IBM Calls Completed Telelogic Acquisition a 'Notable Shift' for Its Software Strategy

IBM Thursday announced that it has completed its acquisition of Malmo, Sweden- and Irvine, CA-based Telelogic AB, a provider of enterprise management and development software, including application lifecycle management (ALM) and business process management (BPM) solutions, among others.

Telelogic will retain its brand and report to IBM's Rational division. IBM acquired Telelogic for approximately $845 million.

Telelogic got its start providing protocols for European telecommunications companies but grew to serve the enterprise resource planning and software development lifecycle needs of large companies with complex production lines. The acquisition of Telelogic signals a new phase for IBM software, the company said.

"The acquisition of Telelogic signals a notable shift in the IBM software business," explained IBM Rational's Ken King, Telelogic transition executive, in an e-mailed statement. "In the post-PC era of software driving differentiation and competition in the market, the acquisition of Telelogic is demonstrative of IBM's battle cry to drive innovation and seize opportunities beyond traditional IT markets. This unmatched offering will have implications for consumer electronics, medical systems, automobiles, communications, airplanes, defense missiles and much more."

Source: IBM

King added that the acquisition of Telelogic will boost IBM's customer relationships in this space, as well as in embedded systems software development. It also will help IBM in its service-oriented architecture markets: "IBM's global reach and extensive business partner channel will extend far beyond what Telelogic could do alone and even further enable game-changing plays like SOA and PLM in the systems space."

IBM plans to explain more about its "developing technical systems" to customers and partners at the upcoming IBM Rational Software Development conference in June in Orlando, FL.

According to a separate announcement today on Telelogic's site, the company's president and CEO, Anders Lidbeck, has resigned his post but will work with IBM on integrating the two companies and will remain in place until "the Board of Directors of Telelogic have appointed his successor."

IBM first announced its plan to acquire Telelogic in June.

About the Author

Becky Nagel is executive editor, Web Initiatives for the 1105 Redmond Media Group and the editor of Redmondmag.com.

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