IBM to buy AT&T subsidiary ‘Sterling Commerce’ for $1.4 billion

May 24th, 2010 - 11:49 pm ICT by Aishwarya Bhatt  

New York, May 24 (THAINDIAN NEWS) IBM is all set to buy the AT&T subsidiary ‘Sterling Commerce’ for a whooping $1.4 billion. And the buyout would have a cash settlement as well, according to the officials of both the companies. And IBM is not just interested in the market share of Sterling Commerce, because they are going to buy the technology as well, in an apparent bid to boost their technical expertise. Perhaps they have taken a hint from Oracle, who has boosted its domain expertise in many areas, by ruthlessly buying and acquiring small and big companies.

“The pending acquisition will bolster IBM’s already burgeoning portfolio of data management software. Sterling Commerce’s capabilities, combined with IBM’s own middleware and analytics products, will help companies respond more nimbly to sudden business challenges,” IBM officials said.

According to reports, Sterling Commerce makes business-to-business data integration software and they have quite a presence in the market as well. They have around 18,000 clients in many sectors like financial services, retail, manufacturing and other industries, according to a statement by the company. Sterling has about 2,500 employees and they are going to be absorbed in the WebSphere unit of IBM. As a result of the acquisition, IBM shares reported a slight rise in the prices.

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