IBM to Acquire Octo

IBM 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, the company has acquired more than 25 companies, bolstering its hybrid cloud and AI capabilities. New acquisition news builds on prior IBM Consulting takeovers, including Dialexa, Neudesic, and Taos. IBM's acquisition of Octo from Arlington Capital Partners is expected to close in the fourth quarter of this year and is subject to customary closing conditions and regulatory clearances. The financial details of the deal were not disclosed.

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 and growing IBM Consulting's public and federal market organization to 4,200 highly-skilled employees. With a proven track record of enabling rapid IT modernization and seamless citizen engagement, 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.