IBM yesterday completed the US$845m acquisition of Telelogic AB, the global software firm specialising in technical systems and enterprise architecture.
The tender offer, announced on 11 June last, was finalised after IBM obtained acceptance from 96.9pc of stock ownership in Telelogic, as well as satisfaction of other conditions of the offer, including necessary worldwide regulatory approvals.
Telelogic has more than 8,000 customers worldwide. Headquartered in Malmo, Sweden, and Irvine, California, the company has over 1,200 employees and operations in 22 countries around the world, including Ireland where it employs 15 people in Blackrock, Dublin.
The acquisition will broaden the range of software and system development capabilities for IBM customers.
The two companies provide a comprehensive offering for defining, modelling, building, testing and delivering the software used in systems in a number of industries, including the aerospace and defence, telecommunications, electronics and automotive industries.
A potential outcome of the acquisition is companies in the aerospace and defence sector using IBM and Telelogic to develop and operate advanced satellite radar systems and space telescopes.
“Telelogic is an important element of our software and systems development and delivery strategy,” said Dr Daniel Sabbah, general manager, IBM Rational Software.
“Software is at the heart of embedded devices and systems. Whether it’s used to develop the next generation of communication devices or systems for space exploration, this IBM technology has important implications for society.”
Telelogic will report into the IBM Rational Software unit. Telelogic clients’ and partners’ 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.
Since 1995, IBM has invested more than US$18bn on public acquisitions, making it the most acquisitive company in the technology industry based on volume of transactions.
By Niall Byrne
