IBM has announced its acquisition of application modernization assets from Advanced, a UK-based company specializing in mainframe modernization and migration services. The move is aimed at bolstering the company's consulting business by enhancing mainframe application and data modernization services. The acquired assets will complement its watsonx Code Assistant for Z, a generative AI-assisted product released in August 2023 to aid IBM Z systems customers in modernizing their applications.
The employees from Advanced, set to join IBM Consulting as part of the acquisition, bring over 30 years of experience in supporting mainframe strategies and application modernization across various industries, including finance, insurance, automotive, government, utilities, and media. While the financial details of the deal remain undisclosed, both companies anticipate the transaction's completion in the second quarter of 2024. With this acquisition, IBM strategically invests in mainframe application modernization assets, recognizing the continued preference for mainframes due to their superior security, resiliency, and transaction throughput. The company's focus on expanding its consulting business and strengthening hybrid cloud and AI capabilities aligns with its broader acquisition strategy under CEO Arvind Krishna, who has overseen over 35 acquisitions since April 2020.
