IBM is buying data management software firm Ascential Software in a $1.1 billion deal aimed at broadening its information integration offering as it seeks to narrow the gap with rivals.
Reuters reports that IBM says the acquisition will complement its information integration business, a unit that produced triple-digit growth in 2004, and vault it into the top position in this software niche.
"Customers are spending up to 40% of IT budgets trying to integrate applications and information," says Janet Perna, GM of IBM`s information management software division. "With this acquisition, we are really addressing one of the major growth areas, which is one of the gaps in our technology."
Ascential is a data integration company, offering businesses software that standardises and integrates data from disparate sources, and allows users to analyse trends.
The company, which was incorporated in 1986, increased its revenue by 46% to $271.9 million in 2004. It has 3 000 customers in various industries.
IBM has been a reseller of Ascential Software`s products and bought Ascential`s database software systems business, Informix Software, for $1 billion in 2001.
IBM has been on a buying spree of information management software in recent years, making eight small or medium-sized deals since 2001 in content management, information integration and business intelligence. Ascential is IBM`s 40th acquisition in the past 10 years.
Reuters reports that the Ascential acquisition is expected to put pressure on IBM rivals such as Oracle and SAP AG.
The deal values Ascential at $18.50 a share. The acquisition is subject to approval by regulators and Ascential Software shareholders. It is expected to close in the second quarter of this year. IBM says it will offer employees of Ascential jobs within the company.
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