IBM pads software lineup; Buys ILOG for $340 million
IBM said Monday that it will acquire ILOG in a deal valued at $340 million. The Paris-based ILOG makes business rules management software.
Big Blue said it will combine ILOG's software with its business process management software and service oriented architecture technology (statement). The $340 million price tag is a 37 percent premium from ILOG's closing price Friday.
As for the specifics of the deal, ILOG's board has approved it and IBM said it plans to file the offer with the French stock exchange authority Sept. 15. Regulators in the EU and U.S. will have to approve the deal too.
ILOG also reported earnings for fiscal 2008 (statement). The company had 2008 revenue of $181 million, up 12 percent from $161.5 million in 2007. Net income was $500,000, or 3 cents a share, down from $4.9 million, or 26 cents a share, a year ago.
In a statement, ILOG CEO Pierre Haren said "in the fourth quarter, we faced a challenging economic environment, notably in the financial sector." By selling to IBM, ILOG will get access to a more diverse base of customers.