IBM has announced it will acquire application modernization assets from mainframe modernization provider Advanced.

The terms of the deal have not been disclosed, but the acquisition is expected to close in the second quarter of 2024, subject to customary closing conditions.

The services being acquired by IBM will support the capabilities offered by IBM watsonx Code Assistant for Z, a generative AI tool that helps users modernize their applications through automated code refactoring.

IBM hybrid cloud

“The planned acquisition will further enable us to support clients’ mainframe application modernization journeys, marking another important step forward in IBM’s hybrid cloud and AI strategy,” IBM said in a statement.

The Advanced employees, who IBM says have over 30 years of experience working with enterprise customers, will join IBM Consulting. The new team will support clients through an “array of mainframe application modernization services,” including assessment and design; mainframe transformation and integration; and full deployment.

IBM saw its mainframe revenue drop by 30 percent in the second quarter of 2023, with the company’s infrastructure division posting quarterly revenues of $3.6bn. This figure dropped to $3.3bn in the third quarter of that same year.

The acquisition is the 35th undertaken by IBM since Arvind Krishna was appointed CEO in April 2020, most of which have enabled the company to bolster its AI and hybrid cloud capabilities.