[ Technology Blogs Articles News Reviews ]

 
Google
www Technoclicks.com
Post Tech Blog Article News Reviews

Top Articles

IBM to Buy Micromuse for $865 Million

Posted by iNext - 2005-12-22

International Business Machines Corp. said Wednesday it agreed to acquire Micromuse Inc., which makes software that manages video and voice traffic on computer networks, for about $865 million in cash.
 
Under the definitive agreement, Armonk-based IBM is paying shareholders $10 for each Micromuse share, almost a 40 percent premium to its closing price of $7.21 on Tuesday. Micromuse shares surged $2.60, or 36 percent, to $9.81 in early trading on the Nasdaq Stock Market. The stock had previously traded in a 52-week range of $3.97 to $8.13.

San Francisco-based Micromuse's software is used to monitor and manage network traffic by about 1,800 clients such as Time Warner Inc.'s America Online, E-Trade Financial Corp., Verizon Communications Inc. and other corporate and government customers.

The acquisition boosts IBM's software portfolio as the company increasingly turns its focus to business services. Revenue from Micromuse's customers grew 10 percent to $160.8 million in fiscal 2005.

After the transaction is completed, Micromuse will operate within IBM's Tivoli software division, and its products will be incorporated into IBM's software and hardware offerings.

The deal is expected to close in the first quarter of next year, pending regulatory and shareholder approval, IBM said.

Shares of IBM rose $1.46, or 1.8 percent, to $83.94 in early trading on the New York Stock Exchange.



Related Category :

Software ||

Next ....: Indian software major Wipro acquires US firm for 28 million dollars

:: Previous Articles
:: The End of Software as We Know It
:: Yahoo's hosting clients get blogging software
:: IBM buys Bowstreet in business software expansion

Recent Articles

 


 

Home | | Members | Search | Upadtes | RSS | Tags | Site Map | Tags | Conact

© Technoclicks.com - All rights reserved.