IBM will acquire Dallas software company Dialexa to spearhead the tech giant’s presence in America for digital product development services.
While IBM Consulting has made 13 acquisitions since April 2020, this is its first deal in the digital product development services market, which is expected to reach $700 billion by 2026. Financial details were not disclosed for the transaction, which is expected to close within the last three months of the year.
“In this digital age, customers are looking for the right mix of high-value products to build new revenue streams and improve top-line growth,” said John Granger, senior vice president of IBM Consulting.
Founded in 2010, Dialexa has a team of 300 people including product managers, designers, full-stack engineers and data scientists based in Dallas and Chicago. It develops digital products for clients such as Deere & Company, Pizza Hut and Toyota.
Paul Papas, managing director of IBM’s consulting arm, which was founded in 2014, said the team has identified product development as a high-growth area.
“When we met [Dialexa’s team]it was love at first sight, I think,” Papas said.
Dialexa helped design the robotic lawnmower developed by local startup Robin Autopilot, which was later purchased by the Irving-based Fahey Group. It also built the platform for Dallas-based parking technology provider ParkHub.
Dialexa is led by founders Scott Harper, CEO, and Mark Haider, Chairman. Harper has a background in engineering and finance and previously worked as Chief Operating Officer for 2GO Software Solutions Inc. Haider founded his first technology company at the age of 17 and previously led a development project for the US Army Tank Automotive Research Development Engineering Center.
Haider previously stepped down from his role as Dialexa’s co-CEO in 2015 to focus on automotive technology company Vinli, which grew out of Dialexa Labs, the company’s internal innovation and development engine.
M&A activity picked up slightly in August. According to S&P Global Market Intelligence, the first half of the year saw a 26% decline in activity compared to the same period last year due to rising inflation, falling stock valuations and rising interest rates. The total value of US M&A as of August 19 was approximately $81 billion.
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2022 The Dallas Morning News.
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