CALIFORNIA: IBM Corp is in talks to acquire U.S.-Israeli data storage company Storwize Inc for $140 million, Israel's TheMarker financial news website reported on Sunday.

Storwize, which develops online data compression software that increases storage space in network storage environments, has raised $40 million since it was founded in 2004, the report said.

TheMarker said the deal was expected to close by the end of July.

Storwize officials could not be reached for comment.

Investors in Storwize include Sequoia Capital, Bessemer Venture Partners, Tenaya Capital, Tamares Group and Tokyo Electron Device.