On Monday, IBM announced the acquisition of Hakkoda, a New York-based data and AI consultancy, for an undisclosed sum.

According to Mohamad Ali, SVP and head of IBM’s consulting business, the acquisition will “further expand” IBM’s capabilities in delivering consultants and AI solutions to clients, particularly in industries such as financial services, public sector, and healthcare and life sciences.

Ali stated that “with Hakkoda’s expertise in data, deep technology partnerships, and asset-centric delivery model,” IBM will be better equipped to deliver value to clients as they undergo AI transformations.

The acquisition of Hakkoda is part of IBM’s ongoing efforts to invest in AI and automation technologies. Recently, the company acquired DataStax, a platform for building AI apps, and finalized its purchase of infrastructure and security automation firm HashiCorp.

This strategy has yielded positive results for IBM. In Q4 2024, the company reported its largest revenue increase in five years, with a significant surge in stock price. During this period, IBM’s AI bookings and sales exceeded $5 billion.

Hakkoda, co-founded in 2021 by former Deloitte GM Erik Duffield, specializes in migrating data to the cloud, particularly the Snowflake data cloud. The company offers a range of tools for data migration and transformation, as well as products for modernizing data from older systems.

Prior to its acquisition, Hakkoda secured $5.6 million in venture capital funding, according to Crunchbase, with backers including Tercera, Lead Edge Capital, and Casimir Holdings.

As part of the acquisition, Hakkoda’s hundreds of consultants across the U.S., Latin America, India, Europe, and the UK will join IBM Consulting, IBM’s consulting division.

Duffield stated that “from the beginning, Hakkoda has committed to being at the forefront of the greatest transformation in history, shaping it rather than observing it.” He believes that IBM’s innovative heritage, commitment to discovery, and deep partnerships with clients make it an ideal partner to take Hakkoda’s modern data consulting to the global market.