International Business Machines Corporation (IBM – Free Report) announced that it acquired Hakkoda Inc., a prominent data consultancy provider, for an undisclosed amount. The acquisition is expected to strengthen IBM’s data expertise and augment its capability to support clients’ AI transformation initiatives.
After a decade of digital transformation and rapid technological advancements, businesses are no longer just experimenting with digital tools, they are extensively incorporating these tools across their operations. Data has become the fundamental element in this growing digital transformation across industries. However, this trend has created new challenges. Identifying the right set of insights from a vast pool of structured and unstructured data generated from everyday operations is a complex endeavor.
As data-driven insights have become one of the key differentiators for success in an increasingly competitive market, companies are seeking solutions that will support data-driven decision making and facilitate seamless innovation. Hakkoda’s full-stack data modernization offers its client the necessary flexibility, scalability and strategic guidance to foster their innovation journey.
Will IBM Stock Benefit From This Acquisition?
Hakkoda’s capabilities in migrating, modernizing and monetizing data estates are perfectly aligned with IBM’s strategy of creating an integrated enterprise data platform optimized for speed, cost and overall efficiency across various use cases. Post acquisition, IBM will also gain access to Hakkoda’s comprehensive portfolio of generative AI tools that effectively expedite data modernization projects.
The company’s consultants have a strong expertise in financial services, the public sector, and healthcare and life sciences industries. Integration of these leading-edge capabilities will significantly amplify IBM’s consulting expertise and enable it to swiftly meet growing demand for data services and AI-transformation initiatives across industries.
To derive actionable insights from the large volume of data, enterprises are steadily investing in the data migration strategy. Per an IDC report, global spending on enterprise intelligence services is expected to grow at 13% CAGR (Compound Annual Growth Rate), reaching $243 billion by 2028. With this acquisition, IBM is aiming to capitalize on this market trend. This will likely boost commercial prospects.
IBM Stock’s Price Movement
The stock has gained 20.9% in the past year against the industry’s decline of 27.8%.
Image Source: Zacks Investment Research
IBM’s Zacks Rank & Stocks to Consider
IBM currently carries a Zacks Rank #3 (Hold).
InterDigital (IDCC – Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, InterDigital delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. InterDigital boasts a comprehensive portfolio of more than 33,000 granted patents and applications. The company witnessed an exceptional year in innovation in 2024, with more than 5,000 new patent filings worldwide.
CommScope Holding Company, Inc. (COMM – Free Report) currently flaunts a Zacks Rank #1. Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. CommScope has an established global manufacturing and distribution footprint. Its strategically located manufacturing hubs optimize product delivery timelines.
United States Cellular Corporation (USM – Free Report) sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing a superior quality network and national coverage. U.S. Cellular is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.
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