IBM to Acquire Digital Transformation Services Provider, Octo

IBM (NYSE: IBM) today announced an agreement to acquire Octo, a U.S.-based IT modernization and digital transformation services provider exclusively serving the U.S. federal government, including defense, health, and civilian agencies. IBM’s acquisition of Octo establishes one of the largest digital transformation partners to the federal government. Upon the close of the acquisition, Octo’s approximately 1,500 employees will join IBM Consulting’s U.S. public and federal market organization.

Octo will be IBM’s eighth acquisition of 2022. Since Arvind Krishna became CEO of IBM in April 2020, IBM has acquired more than 25 companies, bolstering its hybrid cloud and artificial intelligence (AI) capabilities. Today’s news builds on prior IBM Consulting acquisitions, including Dialexa, Neudesic, and Taos.  

Federal government agencies face significant challenges including technology skills shortages, rebuilding of U.S. domestic supply chains and more demand for citizen services. To address these complex challenges, agencies need an industry partner to help them navigate a scalable path to IT modernization with the power to leverage emerging technologies and applications, optimize costs and operational efficiencies, and improve security. The convergence of new hybrid cloud and AI technologies enables government to deliver rapid improvements and adapt to unprecedented challenges.