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IBM keeps up merger pace

By Reuters
San Francisco, 05 Mar 2007

IBM, the world's largest technology services company, said on Friday it plans this year to keep up the "accelerated" pace of acquisitions set in 2006, when it spent almost $5 billion on 13 companies.

The company, in an article on its Web site, did not name potential targets or give details of its acquisition plans, but last year's purchases were focused on software companies, an area in which IBM plans further growth.

International Business Machines said revenue from the companies it acquired in 2006 rose 50% in the fourth quarter from a year earlier, before they were acquired.

"Given IBM's track record, IBM plans to continue the accelerated pace of acquisitions in 2007, depending on valuations," IBM, based in New York, said in the article, which was also filed with the US Securities and Exchange Commission on Friday.

IBM's acquisitions last year included FileNet, for which it paid $1.6 billion; Internet Security Systems ($1.4 billion); Micromuse ($900 million) and MRO Software ($740 million).

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