IBM has bought Sage Software, the company behind the popular Embroiderys software suite.
The acquisition is part of a broader deal that includes a partnership with the US tech giant to produce and sell IBM products, including Watson, which IBM says has become the “world’s most advanced computer”.
IBM said it was investing $300 million to expand its software expertise in Australia, the US and around the world.
In a statement, the IBM Australia unit said the new business model would allow it to “focus more heavily on developing, delivering and commercialising Watson, a system for the human analysis of data”.
“Sage’s software has already been used by many businesses across the world, and we are excited to continue our relationship with Sage, which will enable us to bring Watson to market in Australia,” IBM chief executive officer Stephen O’Neill said.
The new Watson business will focus on Watson and other Watson-powered solutions and will focus its efforts on “improving customer performance”, it said.
“IBM’s new Watson Business will provide us with the capability to improve customer performance across a broad range of businesses, with a particular focus on those using IBM Watson to support their business and customer analytics.”
IBM said Watson was the world’s “most advanced computer”, but said it had “seen and experienced the benefits” of working with other businesses, including the US government.
The Watson business is expected to have a “significant impact” on IBM’s software business.
It said the Watson acquisition will “help us further our global focus on delivering world-class solutions”.
The announcement follows the acquisition of Microsoft’s cloud computing and AI software unit, Azure, earlier this year.
IBM said in a statement the new Watson unit will “continue to focus on providing cloud solutions for IBM’s customers” as part of its wider strategy to grow its business in the cloud.