IBM has agreed to acquire Cognitus, a Dallas-based SAP services provider, for an undisclosed sum to expand its SAP transformation and artificial intelligence capabilities for government and commercial customers.
“SAP is the foundation for so many digital transformations around the world. Clients are turning to trusted partners that know their industries inside and out and can deploy AI-powered solutions to their enterprise operations,” Neil Dhar, managing partner of IBM Consulting Americas, said in a statement published Wednesday.
“Cognitus brings deep industry expertise and proprietary AI technology that improves the efficiency of SAP implementations and will extend the functionality of tools across our SAP portfolio,” Dhar added.
Expanding SAP & AI Capabilities Across Regulated Industries
Established in 2002, Cognitus specializes in SAP S/4HANA implementation, application maintenance, data migration and modernization programs for regulated industries, including aerospace and defense, manufacturing, energy and utilities.
The company’s suite of AI-enabled and SAP-endorsed software offerings includes Cognitus CIS-GovCon, which supports end-to-end government contracting requirements; Cognitus CLM, an AI-powered contract lifecycle management tool built specifically for government contractors; Cognitus Real-Time Billing; and Cognitus Data Migration, a low-code AI tool designed to streamline the migration of data from legacy systems to SAP S/4HANA.
In addition to expanding its portfolio of AI tools, IBM said it expects the transaction to broaden its capabilities in RISE and GROW with SAP.
Cognitus CEO Pat Sathi said joining IBM will enable the company to further enhance its ability to accelerate SAP transformation through innovation.
“It creates new opportunities for our people while strengthening how we serve our customers. Our clients will continue to benefit from our proven SAP-Endorsed solutions and accelerators, backed by Cognitus’ deep industry expertise in regulated industries and now supported by IBM’s global scale and advanced technology capabilities,” Sathi added.
IBM said the acquisition, which is subject to regulatory approvals and other customary closing conditions, marks its continued investment in skills for strategic partners, including SAP, Microsoft, Amazon Web Services, Oracle and Palo Alto Networks.
