IBM has announced an agreement to acquire Octo, an IT modernization and digital transformation services provider serving the federal government.
Upon the close of the acquisition, Octo’s roughly 1,500 employees will join IBM Consulting’s U.S. public and federal market organization.
“Octo was founded on the belief that digital transformation could be delivered at scale to modernize the federal government’s approach to today’s most pressing challenges ⏤ from public healthcare to national security, to defense and intelligence,” said Octo CEO Mehul Sanghani. “Today, we are excited to join forces with IBM to continue to deliver these digital transformation capabilities with greater reach and scale.”
The acquisition of Octo will complement IBM’s existing strengths in IT modernization and digital transformation, enhancing its ability to support federal agencies with a flexible, modern approach to digital transformation. It also grows IBM Consulting’s public and federal market organization to 4,200 employees.
Octo also brings deep federal mission experience, as well as certifications in the technologies most used across the federal government.
“Governments require agility and resiliency to meet the evolving needs of citizens directly and in real time,” said John Granger, senior vice president of IBM Consulting. “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.”
oLabs, Octo’s 14,000-square-foot innovation center with in-house computing capability, expands IBM’s ability to work collaboratively with federal agencies to rapidly prototype emerging technology solutions ⏤ enabling greater impact for federal agencies
IBM’s acquisition of Octo from Arlington Capital Partners is expected to close in the fourth quarter of this year. Financial details of the deal were not disclosed.