IBM has announced that it is to acquire Informix Software, the database business of Informix Corporation, for $1 billion cash. The deal, which is subject to Informix shareholder and regulatory approval, is expected to close in the third quarter this year.
Commenting on what he terms as a very positive deal, Informix South Africa country manager, Simon Jeggo, says it produces a strong division within IBM able to compete with anyone in the database software arena.
Jeggo stresses it will have no impact on local Informix customers, which stand to benefit from dealing with a stronger organisation with more capabilities - particularly in service delivery.
Jeggo adds that both companies will continue to operate as usual in South Africa until the US regulatory requirements are satisfied.
The acquisition positions IBM as a serious player in the fast growing distributed database business - a market where the company has seen its revenues grow 36% year-to-year in the first quarter 2001.
"Customers are aggressively investing in data management software because data collection, storage and use are at the core of a successful e-business," says Sam Palmisano, president and chief operating officer of IBM. "This acquisition of Informix allows IBM to bring the benefits of leadership database technologies to more customers faster."
Once the acquisition is completed, IBM will:
integrate Informix database business operations and personnel into the existing IBM Software data management division led by GM Janet Perna.
market and sell Informix`s database products worldwide through an integrated IBM and Informix sales force.
maintain existing relationships with Informix customers and business partners, including support for and updating of current Informix products.
"The acquisition by IBM is good news for Informix Software`s database customers, partners, employees and stockholders," says Peter Gyenes, chairman and CEO, Informix Corporation. "IBM offers the global resources, investment protection, support and technology leadership our customers and partners need for the future, as well as exciting opportunities for our employees. This acquisition also extends the reach and relevance of key Informix technologies as they are evolved and integrated into future versions of IBM data management offerings."
Following the sale of the database business to IBM, Informix Corporation will be totally focused on its other independent operating business - information asset management solutions provider Ascential Software. The company intends to apply the proceeds from the transaction to fund the growth of Ascential as well as to return a substantial portion of the proceeds to stockholders through a stock-reduction programme. Upon the closing of the transaction, Informix Corporation will be renamed Ascential Software.
In a separate release today, IBM and Ascential Software announced a global strategic alliance to jointly develop and market information asset management solutions based on Ascential`s DataStage, DataStage 390 and Media360"a products as well as IBM`s DB2 and related product platforms.
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