IBM bolsters hybrid cloud & AI capabilities with Dialexa acquisition

IBM has acquired Dialexa, a leading U.S. digital product engineering services firm, to help companies drive innovation and achieve their digital growth agendas. The acquisition is expected to deepen IBM’s product engineering expertise and provide end-to-end digital transformation services for clients.

Since Arvind Krishna became CEO in April 2020, IBM has acquired more than 25 companies. Thirteen of those acquisitions, including Dialexa, have been in IBM Consulting. Dialexa will be the sixth acquisition of IBM in 2022, further bolstering the company’s hybrid cloud and AI skills and capabilities.

The acquisition of Dialexa will be IBM Consulting’s first in the fast-growing digital product engineering services market, estimated to reach $700 billion by 2026. Upon close, Dialexa will join IBM Consulting, spearheading IBM’s digital product engineering services presence in the Americas.

Improving Topline Growth

“In this digital era, clients are looking for the right mix of high-quality products to build new revenue streams and improve topline growth,” said John Granger, Senior Vice President of IBM Consulting. “Dialexa’s product engineering expertise, combined with IBM’s hybrid cloud and business transformation offerings, will help our clients turn concepts into differentiated product portfolios that accelerate growth.”

Founded in 2010, Dialexa delivers a suite of digital product engineering services, helping organizations create transformative products to drive business outcomes. Its multi-disciplinary and highly skilled team of 300 product managers, designers, full-stack engineers, and data scientists advises and create custom, commercial-grade digital products for clients such as Deere & Company, Pizza Hut US, and Toyota Motor North America. Dialexa has deep experience delivering end-to-end digital product engineering services consisting of strategy, design, build, launch, and optimization services across cloud platforms, including AWS and Microsoft Azure.

“Digital product engineering represents the tip of the spear for competitive advantage,” said Scott Harper, CEO, and Co-Founder, of Dialexa. “IBM and Dialexa’s shared vision for delivering industry-defining digital products could be a game changer. We are thrilled to become part of one of the world’s most iconic companies to continue to scale and grow our global client relationships in this rapidly growing market.”

“The Dialexa team has been an outstanding partner in deepening our product thinking and assisting in our design practice on some of our key digital initiatives. It is rare to find a partner with such a strong combination of great thought partnership and deep execution capabilities,” said Chuck Rhoades, Chief Technology Officer, Pizza Hut U.S. “We’re excited about the possibilities of bringing these two companies together.”

The transaction is expected to close in the fourth quarter of this year and is subject to customary closing conditions and regulatory clearances. However, financial details have not been disclosed.

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