IBM announced that it has signed a definitive agreement to acquire Cognitus, a leading provider of SAP S/4HANA services equipped with industry-specific, AI-driven solutions. This acquisition combines Cognitus’ mission-critical SAP expertise, including RISE and GROW with SAP, with IBM’s asset-based approach to digital transformation, enabling enhanced productivity and operational efficiency for clients worldwide.
Founded in 2002 and headquartered in Dallas, Texas, Cognitus brings over 20 years of SAP experience, assisting enterprise clients with end-to-end SAP S/4HANA implementations and ongoing application maintenance. Recognized as an SAP Gold & Co-innovation partner, Cognitus has earned acclaim for its innovative, industry-focused SAP services that empower data-driven enterprises and foster sustainable growth.
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Cognitus enhances its services with a suite of proprietary, AI-enabled software assets. These include Cognitus CIS-GovCon, which manages comprehensive government contracting requirements; Cognitus CLM, an AI-powered contract lifecycle management tool designed for government contractors; Cognitus Data Migration, a low-code AI solution that streamlines legacy-to-SAP S/4HANA data transitions; and Cognitus Real-Time Billing, which accelerates high-volume, project-based billing through real-time transaction processing.
By offering integrated services and software across the SAP project lifecycle, Cognitus enables faster decision-making, mitigates risks, and ensures regulatory compliance. Consequently, organizations in complex and highly regulated industries can simplify operations and achieve consistent outcomes with a single trusted provider.
“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,” said Neil Dhar, Managing Partner, IBM Consulting Americas. “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.”
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IBM’s extensive SAP knowledge, combined with its AI-led delivery platform, IBM Consulting Advantage, positions the company to deliver modern SAP solutions faster and more effectively. The Cognitus acquisition further strengthens IBM’s industry expertise, AI solution portfolio, and RISE and GROW with SAP capabilities.
“Becoming part of IBM enables Cognitus to amplify what we do best – accelerating SAP transformation through innovation,” said Pat Sathi, CEO of Cognitus. “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.”
Additionally, Nitin Khanna, Managing Director, and Amit Baid, President of Cognitus, highlighted: “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.”
This acquisition underscores IBM’s ongoing commitment to invest in skills and strategic partnerships, including AWS, Microsoft, Oracle, Palo Alto Networks, SAP, and others, while strengthening its SAP portfolio and global client impact.
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