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IBM Acquires Optevia
- Not Disclosed
- IBM (NYSE:IBM) announced today that it acquired UK-based cloud CRM provider Optevia for an undisclosed amount. The company will be joining IBM’s Global Business Services division.
- Optevia specializes in cloud-based CRM delivered in a SaaS model, specifically Microsoft Dynamics CRM implementation for the public sector. Founded in 2001, the company does not report its financials but last year reported “record” results.
- The transaction is one of several announced by IBM so far this year in high value spaces, such as Truven Health Analytics and cybersecurity consultant Resilient Systems in February as well as cloud streaming platform Ustream, Inc. in January.
Pairing Strong Potential With Global Reach
- Continued Expansion in Cloud Services: IBM has been actively involved in the cloud space. It acquired Workday services partner Meteorix in November and announced several cloud partnerships targeting the public sector, seeing it as a largely untapped market with a sizable proposed budget. Designed to promote and deliver hybrid cloud solutions, the partnerships matched IBM’s cloud with leading distributors’ existing cloud services foothold. As with Meteorix, this deal complements IBM’s broad partnership with established in-house capabilities.
- Refocusing On Higher Value: IBM divested its CRM and BPO business to Synnex in 2013, but since then it has continued to be involved on the higher-value end of the CRM space, developing partnerships with players like SugarCRM. This acquisition strengthens IBM’s capabilities, particularly involving Microsoft Dynamics CRM, in a sector with significant potential – Gartner totaled CRM spending at $23B in 2014 with SaaS accounting for approximately 47%.
- Providing Resources to Achieve The Next Level: Until now, Optevia has focused exclusively on the UK market. While the acquisition gives IBM an on-site presence in the UK to serve public sector clients, it also provides new capabilities for IBM to cross-sell to its global client base.
- Systems Integrators Continue to be Hot Prospects: This acquisition is the latest in a very active space, as large IT firms seek to quickly add capabilities faster than they would through organic growth. Recent such transactions include AST’s September acquisition of Serene Corporation in the Oracle space.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.