IBM announces closure of Telelogic acquisition

IBM yesterday achieved the closure of its $845-million acquisition of  the Swedish software firm, Telelogic AB, two months after buying business intelligence software maker Cognos for $5 billion.

In June 2007, Big Blue had announced its definitive agreement to acquire Telelogic for $745 million, saying that the acquisition of the Swedish developer of complex software products would complement its own ability to assist customers to develop high-quality complex systems that range from next-generation aerospace,defense, telecommunications, electronics, automotive and other industries . 

The tender offer, announced on 11 June 2007 was finalised after IBM obtained acceptance from 96.9 per cent of stock ownership in Telelogic as well as satisfaction of other conditions of the offer, including necessary regulatory approvals in different countries.

The acquisition  will boost IBM Rational Software's in  developing embedded systems software and help IBM in its service-oriented architecture markets.

Telelogic says the customers of the two companies will benefit from their combined technologies and services , providing them a wide range of software and system development capabilities, along with support from a worldwide sales and services organisation.

For example, an automotive manufacturer would use IBM and Telelogic solutions to help build and deliver software to operate a vehicle's anti-lock braking system or navigation system, whileaerospace and defense organisations could develop and operate advanced satellite radar systems and space telescopes using the combined strengths of the two software firms.