By Stacy Cowley, CRN
IBM has agreed to buy Swedish software lifecycle management technology developer Telelogic for $745 million, the companies announced Monday.
The news drew cheers from attendees at IBM's Rational Software Development Conference in Orlando, where Rational general manager Danny Sabbah announced the acquisition at the start of his opening keynote. Citing last week's acquisition of security vendor Watchfire, Sabbah spoke of IBM's commitment to providing customers and partners with the tools and applications they require.
"We need to refocus on complex systems development, and we're dong that in spades today with our announcement of our intent to acquire Telelogic," Sabbah said.
Based in Malmo, Sweden, with U.S. operations headquartered in Irvine, Calif., Telelogic makes modeling, design, change management, governance and other software development lifecycle tools. Serving industries including defense and financial services, Telelogic touts its software use by more than one-third of the world's 500 largest companies. It reported a profit of $22.9 million last year on sales of $217.9 million)
IBM, in Armonk, N.Y., plans to fold Telelogic into its Rational software group. IBM did not offer an estimated close date for the deal, which still needs to clear shareholder and international regulatory approvals.