“Big Blue” to acquire Ilog

Source: Exec Digital USA

Date :7/28/2008 4:25:43 AM

Computer services and software giant IBM has announced plans to buy French software maker Ilog for US$340million.

The deal, approved by Ilog's board, is part of IBM's strategy to make bolt-on acquisitions of intellectual companies to which it can give scale.

“This combination will allow us to dramatically extend our market reach and realize the full potential of all of our technologies while protecting investments of Ilog's customers now and into the future,” Ilog chairman and chief executive Pierre Haren said in a statement.

IBM is offering €10 per ordinary share and the US dollar equivalent per American Depositary Share (ADS).

It has spent about US$21 billion on 70 acquisitions since 2003, including Canada's Cognos, its biggest purchase ever, for about US$5 billion, in January.

Its offer for Ilog is to be filed with the French market watchdog AMF after September 15.

Trading in Ilog's shares was suspended.

Separately, Ilog on announced its net profit dropped to US$500,000 on revenues of US$181 million in the year to June 30, from a net income of US$4.9 million on revenues of US$161.5 million.