IBM (IBM) is acquiring Waeg to boost its portfolio of Salesforce services and advance its hybrid cloud and artificial intelligence strategies. Waeg is a Europe-focused consulting partner for customer-management software provider Salesforce (CRM).
IBM sells business software, provides cloud computing services, and also serves as Salesforce’s global strategic partner. Waeg provides a range of Salesforce consulting services, including digital strategy advisory and marketing automation. With more than 400 Salesforce certifications, it serves leading global brands and has great expertise in industries like manufacturing and healthcare.
“Waeg’s strength in Salesforce consulting services will be key to creating intelligent workflows that allow our clients to keep pace with changing customer and employee needs and expectations,” said IBM business Senior Vice President Mark Foster.
Noting that Salesforce plays a major role in the digital transformation of companies, IBM is counting on Waeg to help it win more Salesforce business in Europe. It previously acquired 7Summits to strengthen its Salesforce business in the U.S. IBM did not reveal how much it will spend on the Waeg acquisition, but it said the transaction is expected to close in the current quarter.
As companies continue to look for better ways to address customers’ changing demands, IBM estimates its Salesforce business market could reach $21 billion in 2024. (See IBM stock analysis on TipRanks)
Last month, Wedbush analyst Moshe Katri reiterated a Hold rating with a price target of $140 on IBM stock. Katri’s price target implies 2.72% downside to the current price.
“We are becoming more constructive on the stock, especially given the recent, important change in executive management compensation,” noted Katri.
Consensus among analysts on Wall Street is a Moderate Buy based on 3 Buy, 3 Hold, and 1 Sell ratings. The average analyst price target of $148.43 suggests 3.14% upside potential to current levels.
IBM scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations.