Overview:
On 22 September 2022, IBM announced its intent to acquire Dialexa, a Dallas, TX-based digital product engineering services firm, to help its clients drive innovation and realize their digital growth goals.
Financial terms were not disclosed.
About IBM:
IBM is a leading global provider of hybrid cloud and AI, and consulting expertise. It has over 4,000 government and corporate entities as clients spread across over 175 countries.
About Dialexa:
Founded in 2010, Dialexa is a digital product engineering services firm. It provides end-to-end digital product engineering services including strategy, design, build, launch, and optimization services across cloud platforms including AWS and Microsoft Azure.
The company has a highly skilled and talented team of 300 product managers, designers, full-stack engineers and data scientists.
Its clientele includes Deere & Company, Pizza Hut US, and Toyota Motor North America.
The company is headquartered in Dallas, TX and has an additional office in Chicago, IL.
Rationale of the transaction:
Dialexa will deepen IBM's product engineering expertise and provide end-to-end digital transformation services for clients. It will be the sixth acquisition IBM has consummated in 2022, further bolstering its hybrid cloud and AI skills and capabilities.
Dialexa will join IBM Consulting, leading IBM's digital product engineering services presence in the Americas. It will be IBM Consulting's first acquisition in the rapidly growing digital product engineering services market, which, according to IDC, is estimated to reach $700bn by 2026.
The transaction is expected to close in the fourth quarter of 2022.
IBM has acquired over 25 companies since Arvind Krishna took over as the CEO in April 2020. This is IBM Consulting’s thirteenth acquisition since April 2020 and builds upon its recent acquisitions of Neudesic, a leading Microsoft Azure consultancy, Sentaca, a leading telco consulting services and solutions provider, Nordcloud, a European leader in cloud implementation, application transformation and managed services and Taos, one of the largest multi-cloud consulting and managed services firms in North America.
The Chesapeake Group was not an advisor in this transaction.