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IBM Acquires UK based CRM Firm Optevia

19 Mar

IBM acquistion, Optevia, International Machine Business, technology organization

On March 18, 2016 International Business Machines Inc. announced the acquisition of a UK based relationship management firm (CRM) by the name of Optevia. The financial terms of the acquisition have not yet been disclosed however the newly acquired firm will be a part of IBM’s Global Business Services department. This latest acquisition is likely to help the technology company with the rising demands of its public sector clients.

The CRM firm, Optevia was founded back in 2001 and is privately-held Software as a service (Saas) consultant firm that focuses mainly on public sector companies. The main aim of the company is to help its clients improve their customer services along with changing processes in their client’s business.

In a press release, IBM’s Public Sector in Europe, Joanna Davinson stated that with the help of this latest acquisition IBM will be able to improve its Public Sector clientele as it will have more industry focused customer relationship management solutions. Furthermore, he added while talking about the specific purchase that it strategic move on the company’s part will help to strengthen itself as a SaaS provider along with being a Global Software Integrator.

With the involvement of the SaaS consultant firm, IBM which currently lacks in its SaaS CRM products in the Public Sector entities will probably be able to benefit from it a lot. Furthermore, with its specialty the CRM firm will also help IBM diversify and grow its cloud portfolio.

In addition to that, with Optevia on board there are two advantages, one that the company will be able to better make its presence in the UK market and also scale globally with the CRM firm. The CRM firm has made quite a mark in the UK market as it has been there for over a decade now but that is the only market that it has focused on. This plays well for Optevia as well since now they have an entity on board with it with the help of which it can make its service available globally.

Furthermore, during fiscal year 2015, the Global Business Service department of IBM witnessed a significant decline in its revenue. On a year over year basis, there was a decline of 10% in revenue contribution. The acquisition can benefit the company from a number of angles one being that there might be an increase in the revenue contribution and along with that as it will bring diversification to the organization, they are likely to widen their customer base through that which would ultimately help the company grow in revenues.

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Posted by on March 19, 2016 in Finance News, IBM

 

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