IBM has announced plans to acquire Cognitus, a Dallas-based SAP S/4HANA services provider, in a move aimed at strengthening its global SAP transformation capabilities. Cognitus, founded in 2002, is known for delivering industry-specific, AI-powered SAP solutions and has built a reputation as an SAP Gold and Co-innovation partner. Its expertise spans end-to-end SAP S/4HANA implementations and application maintenance services, helping enterprise clients optimize operations and drive sustainable growth.
Through this acquisition, IBM aims to integrate Cognitus’ deep SAP knowledge, proprietary software assets, and industry-focused solutions into its own portfolio. Cognitus brings AI-enabled tools such as CIS-GovCon for government contracting, CLM for AI-powered contract lifecycle management, Data Migration for low-code SAP system transitions, and Real-Time Billing for high-volume, project-based billing. These capabilities enhance decision-making, reduce operational risk, and ensure compliance across complex industries, allowing clients to streamline operations with a single provider.
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“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.”
IBM’s existing strengths in SAP technologies and its AI-led delivery platform, IBM Consulting Advantage, will be further reinforced through Cognitus’ offerings. The acquisition expands IBM’s capabilities in RISE and GROW with SAP, enabling faster, more efficient deployment of modern SAP solutions on a global scale.
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Pat Sathi, CEO of Cognitus, emphasized the benefits of joining IBM, saying, “Becoming part of IBM enables Cognitus to amplify what we do best – accelerating SAP transformation through innovation. 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.”
Cognitus leaders Nitin Khanna and Amit Baid highlighted that the partnership with IBM will accelerate software innovation and expand their reach. “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,” they said.
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