IBM (NYSE: IBM) announced that it will buy business intelligence firm Cognos (NASDAQ: COGN) for about $5 billion in cash, or $58 a share. The company currently trades at about $52.
In its press release, IBM said, "The acquisition of Cognos supports IBM's Information on Demand strategy, a cross-company initiative announced on February 16, 2006 that combines IBM's strength in information integration, content and data management and business consulting services to unlock the business value of information."
As hardware fades as IBM's big revenue platform, software and consulting services must replace it. The market may see more of these deals.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
11-12-2007 @ 10:46AM
Robin said...
Found this earlier today regarding the deal: http://www.newsvisual.com/newsvisual/2007/11/ibm-and-cognos.html
The connections between the directors/executives at either company are interesting to consider, in terms of convincing Cognos to take the deal. Hadn't Cognos been approached not to long ago about a takeover, or where those just rumors?