IBM to buy Ascential Software for $1.1 b

NEW YORK: IBM, the world's largest computer company, has agreed to buy U.S. software maker Ascential Software Corp. for about $1.1 billion cash or $18.50 a share, the two companies said.

The acquisition, which is expected to close in the second quarter of 2005, is subject to approval from Ascential shareholders and relevant authorities.

Ascential shares closed at $15.70 on Nasdaq on Friday.

IBM said the acquisition would complement and strengthen its fast-growing information integration business, a unit that produced triple-digit growth in 2004.

Ascential Software, based in Westboro, Massachusetts, provides enterprise data integration software that helps companies integrate complex data to streamline operations.

"Information integration is an important enabler of an on demand business strategy and customers are increasing their investments in software that allows them to rapidly analyze, consolidate and extract value from the business data," said Steve Mills, group executive of IBM Software Group.

Ascential Software grew rapidly in 2004, with revenue rising 46 percent to $271.9 million and more than 3,000 customers and partners across all major industries.

Once the deal is completed, Ascential Software's operations will be established as a business unit within IBM's information management software division.