IBM's Acquisition of Cognitus | Note by Cognitus CEO

Introduction

IBM’s intent to acquire Cognitus was first announced last month. Now, with regulatory approval complete, we’re proud to officially begin our next chapter as Cognitus, an IBM Company — marking a significant step forward for our people, our customers, and our partners around the world.

I want to explain why this matters, what stays the same, and what gets even better.

Why IBM – and Why Now

For more than two decades, Cognitus has focused on a simple promise: help customers move to SAP ERP with speed, predictability, and compliance. We’ve done that with:

• SAP-endorsed software and accelerators that extend SAP Cloud ERP
• Deep expertise in regulated industries like Aerospace & Defense
• Market leadership in GROW with SAP fit-to-standard transformations

IBM’s acquisition of Cognitus is a recognition of those strengths. Combining Cognitus’ specialization and software assets with IBM’s global scale, infrastructure, and AI capabilities will enable us to deliver SAP programs faster, more efficiently, and at greater enterprise scale across industries including Aerospace & Defense, Professional Services, Manufacturing, Consumer Products, and Wholesale Distribution, and more.

A Shared Vision for What Comes Next

From the beginning, Cognitus has been built on deep SAP expertise and a unique dedication to client success. Our goal has always been to make SAP transformations faster, simpler, and more effective for complex industries.

Joining IBM allows us to take that vision further. By combining Cognitus’ industry-specific solutions and SAP-Endorsed Apps with IBM’s scale, infrastructure, and AI, we’ll deliver outcomes that reach farther, move faster, and create even more measurable impact.

Together, we’ll help clients:

• Modernize operations through SAP Cloud ERP with greater speed and predictability.
• Extend compliance and audit-ready controls across global programs.
• Harness the power of AI and analytics to drive efficiency and decision-making.
• Access a broader ecosystem of services and technology innovation through IBM.

What This Means for Our Customers

For our clients, continuity and partnership come first. You will continue working with the same Cognitus teams and leadership you know and trust. Our solutions remain central to how we deliver value.

What changes is the scale of what we can now achieve together. With IBM’s reach and infrastructure, Cognitus can:

• Support larger, multi-country SAP S/4HANA Cloud programs.
• Accelerate innovation in our products through AI and cloud integration.
• Expand service coverage and delivery centers across North America, EMEA, and APAC.
• Bring new capabilities to regulated industries through IBM’s sovereign cloud and advanced compliance frameworks.

Simply put: we are combining Cognitus’ specialization with IBM’s scale – and that means more value for our customers, faster.

What This Means for Our SAP Partnership

Cognitus’ success has always been built in close collaboration with SAP. Our recognition as an SAP Gold and Co-Innovation Partner, combined with multiple SAP Partner Excellence Awards and SAP-Endorsed App validations, underscores the strength of that relationship.

Now, with IBM, we have the opportunity to deepen that partnership even further. Together, we’ll:

• Strengthen alignment around GROW with SAP and RISE with SAP programs globally.
• Co-innovate on new industry-specific, asset-led offerings that expand SAP’s reach in regulated sectors.
• Support larger, multi-country transformations with combined delivery and infrastructure capabilities.
• Bring additional credibility and capacity to help SAP clients accelerate their journey to the cloud.

Our mission to help SAP customers modernize confidently remains unchanged – and with IBM’s backing, we can now bring that value to even more organizations around the world.

What This Means for Our People

To our employees – this milestone is a reflection of your hard work and expertise. IBM’s acquisition of Cognitus reflects the strength of what you’ve built: a company known for its deep SAP specialization, commitment to clients, and ability to deliver complex programs with precision and trust.

As we move forward, our focus remains the same – but with more opportunities to learn, grow, and lead on a global stage. IBM provides a platform for larger projects, new innovations, and expanded career paths.

Looking Ahead

This next phase will amplify what makes Cognitus unique – our agility, innovation, and focus on regulated industries – while bringing the global strength of IBM behind it.

We’re proud of where we’ve come from, and we’re even more excited about what lies ahead:

• Faster innovation for our clients.
• More opportunities for our people.
• Greater value across the SAP ecosystem.

The future of Cognitus, an IBM company, is one of growth, partnership, and possibility.

To our clients and partners: thank you for trusting us with your transformations. To the Cognitus team: you made this moment possible. This next chapter gives us the platform to do more of what we do best – with the scale to match our ambition.

We’re just getting started.