Armonk, New York-based IBM Corp. announced Thursday the completion of its approximately US$845-million tender offer for Telelogic AB shares.
The tender offer, announced last June, was finalized after IBM obtained acceptance from 96.9 per cent stock ownership in the Malmo, Sweden-based software vendor, as well as satisfaction of other conditions of the offer including necessary global regulatory approvals.
With the companies’ combined portfolios, the goal is to help customers deliver systems to market at reduced cost and shorter time.
Telelogic will report to the IBM Rational Software unit. Telelogic’s 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,” the companies said.
“Telelogic is an important element of our software and systems development and delivery strategy,” said Daniel Sabbah, general manager with IBM Rational Software.
The acquisition supports IBM’s acquisition strategy and capital allocation model, in that it will contribute to the company’s objective for earnings-per-share growth through 2010. Since 1995, IBM has invested more than $18 billion on public acquisitions.
