IBM (NYSE: IBM) today announced an agreement to acquire Octo, a U.S.-based IT modernization and digital transformation services provider exclusively serving the U.S. federal government, including defense, health, and civilian agencies. IBM's acquisition of Octo establishes one of the largest digital transformation partners to the federal government. Upon the close of the acquisition, Octo's approximately 1,500 employees will join IBM Consulting's U.S. public and federal market organization.