Pat Sathi, CEO of Cognitus [Compsote image; Cognitus/DI Studio]

Dallas-based SAP provider Cognitus will be acquired by IBM (NYSE: IBM), the Armonk, New York-based tech giant announced.

Cognitus is a leading SAP S/4HANA services provider delivering industry-specific, AI-powered solutions. Terms of the deal were not disclosed.

“Becoming part of IBM enables Cognitus to amplify what we do best — accelerating SAP transformation through innovation,” Cognitus CEO Pat Sathi said in a statement. “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.”

IBM said that Cognitus, founded in 2002, will bring mission-critical SAP skills, including in RISE and GROW with SAP, as well as an extensive portfolio of software assets.

The company said Cognitus’ combination of services, software, and industry expertise, aligns with IBM’s asset-based approach to digital transformation, driving increased productivity and operational efficiency for clients around the world.

Cognitus brings more than 20 years of SAP expertise, IBM said, helping enterprise clients with end-to-end SAP S/4HANA implementations and application maintenance services. As an SAP Gold & Co-innovation partner, Cognitus has been recognized for pioneering industry-tailored SAP services and solutions that empower the data-driven enterprise and fuel sustainable growth, IBM said.

Foundation for digital transformation

According to IBM, Cognitus’ services capabilities are boosted by its suite of proprietary, SAP-endorsed and AI-enabled software assets that include Cognitus CIS-GovCon which supports end-to-end government contracting requirements; Cognitus CLM, an AI-powered contract lifecycle management solution built specifically for government contractors; Cognitus Data Migration, a low-code, AI solution that simplifies the migration of data from legacy systems to SAP S/4HANA; and Cognitus Real-Time Billing, which accelerates high-volume, project-based billing by processing transactions in real time.

Cognitus’ services and software capabilities throughout the entire project lifecycle of SAP transformation projects “enable faster decision-making, reduce risk, and support compliance,” IBM added.

“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, IBM Consulting Americas, said in a statement. “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.”

IBM said it has extensive skills in SAP technology and transformations, complemented by its AI-led delivery platform, IBM Consulting Advantage. It said the Cognitus acquisition strengthens IBM’s industry expertise, portfolio of AI solutions, and capabilities in RISE and GROW with SAP, bolstering its ability to deliver modern SAP solutions faster and more effectively for global clients.

“Our software-first approach has always been central to how we deliver value. With IBM, we’ll be able to accelerate software innovation, enhance our portfolio, and expand these capabilities to serve an even broader global customer base,” Nitin Khanna, managing director, and Amit Baid, president at Cognitus, said.

The acquisition of Cognitus strengthens IBM’s SAP portfolio and represents IBM’s continued investment in skills for strategic partners like AWS, Microsoft, Oracle, Palo Alto Networks, SAP, and more, the company said.

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