Through the acquisition of Octo, IBM expects to bolster its IT modernisation and digital transformation capabilities allowing the company to assist federal agencies with a flexible, modern approach to digital transformation
IBM has agreed to acquire Octo, a US-based digital transformation and IT modernisation services provider, from Arlington Capital Partners for an undisclosed price.
Octo exclusively caters to the US federal government, including healthcare, national security, defence, and civilian agencies.
Through the acquisition of Octo, IBM expects to bolster its IT modernisation and digital transformation capabilities, thereby assisting federal agencies with a flexible, modern approach towards digital transformation.
Following the closing of the deal, Octo’s nearly 1,500 employees are expected to join IBM Consulting’s US public and federal market organisation to expand it to 4,200 employees.
Founded in 2006, Octo assists federal agencies in implementing and integrating at-scale next-generation technology and innovation.
The firm offers artificial intelligence, cybersecurity, Agile, DevSecOps, blockchain, cloud, open source, and data science solutions.
Octo founder and CEO Mehul Sanghani said: “Octo was founded on the belief that digital transformation could be delivered at scale to modernise the federal government’s approach to today’s most pressing challenges – from public healthcare to national security, to defense and intelligence.
“Today, we are excited to join forces with IBM to continue to deliver these digital transformation capabilities with greater reach and scale.”
According to IBM, Octo brings in certifications in the technologies that are commonly employed across the federal government as well as its deep federal mission experience.
Octo has a 14,000ft2 innovation hub dubbed oLabs, which has in-house computing capability. The hub will help IBM expand its capacity to collaborate with federal agencies to quickly prototype emerging technology solutions.
IBM Consulting senior vice president John Granger said: “Governments require agility and resiliency to meet the evolving needs of citizens directly and in real time.
“The combination of Octo’s highly qualified and respected team with IBM’s consulting expertise, technical capabilities and strategic partner ecosystem will enable federal clients to transform faster and better serve citizens.”
The transaction is anticipated to close in Q4 2022, subject to customary conditions and regulatory approvals.