Friday, 4 April 2008

IBM Completes Acquisition of Telelogic AB

IBM today announced the completion of its approximately USD845 million USD tender offer for the shares of Telelogic AB. The tender offer was finalized after IBM obtained acceptance from 96.9 percent of stock ownership in Telelogic as well as satisfaction of other conditions of the offer, including necessary worldwide regulatory approvals.

With this acquisition, IBM, Telelogic, and business partners will help customers deliver high quality systems to the market faster while reducing costs. Customers will benefit from the combined technologies and services of both companies, providing them a wide range of software and system development capabilities, along with support from a worldwide sales and services organization.

"Telelogic is an important element of our software and systems development and delivery strategy," said Kustiawan Kusumo, Country Manager, IBM Software Group.  He adds, software is the heart of embedded devices and systems, whether it’s used to develop the next generation of communication devices or systems for space exploration.

Regarding this acquisition, Telelogic will report into the IBM Rational Software unit. Consistent with IBM’s Software strategy, Telelogic clients and partners's investments in existing IBM and Telelogic technologies will be preserved, allowing customers to take advantage of the broader set of capabilities without the need to replace existing systems.

The Telelogic acquisition supports both IBM’s acquisition strategy and capital allocation model, and will contribute to the achievement of the company’s objective for earnings-per-share growth through 2010. Since 1995, IBM has invested more than USD18 billion on public acquisitions, making it the most acquisitive company in the technology industry, based on volume of transactions. Other strategic acquisitions in support of IBM’s software and systems development and delivery strategy include BuildForge (build and release management), SystemCorp (project and portfolio management) and Watchfire (Web application security).