Paul Krill
Editor at Large

IBM completes Telelogic buy

news
Apr 3, 20082 mins

$845 million deal puts Big Blue in market to develop apps for devices.

IBM has completed its approximately $845 million tender offer for shares of tools maker Telelogic, IBM said on Thursday.

With the acquisition, IBM moves into the fast-growing market of software development for non-computer devices, such as home appliances, car anti-locking braking systems, and navigation systems. Other markets where IBM can make headway include retailers, medical systems, airplanes, consumer electronics, space telescopes, and robots, IBM said.

“Telelogic is an important element of our software and systems development and delivery strategy,” said Daniel Sabbah, general manager, IBM Rational Software, in a statement released by the company. “Software is at the heart of embedded devices and systems. Whether it’s used to develop the next generation of communication devices or systems for space exploration, this IBM technology has important implications for society.”

The marriage of hardware and software, such as with the Apple iPhone, is creating an enormous market opportunity, IBM said. Telelogic’s expertise in complex systems development will boost IBM’s opportunity and leadership in the embedded and complex systems development space, said IBM. With Telelogic, IBM can accelerate innovation of products that rely on software, the company said.

Neither Microsoft nor HP have the integrated software and systems capabilities as IBM has in this arena, IBM said.

The tender offer for Telelogic was announced June 11, 2007.  The original offer of $745 million rose to $845 million because of currency fluctuation, IBM said. Telelogic will report to the IBM Rational Software unit.

Paul Krill

Paul Krill is editor at large at InfoWorld. Paul has been covering computer technology as a news and feature reporter for more than 35 years, including 30 years at InfoWorld. He has specialized in coverage of software development tools and technologies since the 1990s, and he continues to lead InfoWorld’s news coverage of software development platforms including Java and .NET and programming languages including JavaScript, TypeScript, PHP, Python, Ruby, Rust, and Go. Long trusted as a reporter who prioritizes accuracy, integrity, and the best interests of readers, Paul is sought out by technology companies and industry organizations who want to reach InfoWorld’s audience of software developers and other information technology professionals. Paul has won a “Best Technology News Coverage” award from IDG.

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