IBM expanded its market presence in the public sector with its acquisition of U.K. defense consultancy company SiXworks. The multinational technology firm said in a blog post on Tuesday that SiXworks’ digital, cyber and defense cloud capabilities complement its existing U.K. offerings on cybersecurity, data and artificial intelligence.
IBM purchased SiXworks from London-based private equity firm Chiltern Capital for $150 million, according to a report from data company MergerLinks. Farnborough, England-based SiXworks was established in 2017. In October 2022, Chiltern invested in the company and worked with its management team to further develop the business.
SiXworks CEO Steve Rawsthorn said IBM is a “perfect partner” for pursuing future growth.
“We will continue to operate autonomously while benefiting from IBM’s scale, as well as complementary resource, expertise and technology in areas like AI and quantum computing,” he said in a statement posted on LInkedIn. “Being part of IBM Consulting will allow us to remain technology agnostic, vendor neutral, whilst pursuing larger and broader opportunities across defence and national security.
IBM’s recent U.K. government contracts include a position in a potential $5.24 billion tech deal to provide software services to its national tax authority.
SiXworks’ entry into IBM Consulting’s public sector industry team follows Big Blue’s acquisition of Octo, a Reston, Virginia-based IT modernization and digital transformation services provider serving the U.S. federal defense, health and civilian agencies.