FSN: IBM to acquire Cognos to accelerate “Information on Demand” business initiative

IBM to acquire Cognos to accelerate “Information on Demand” business initiative

19th November 2007
IBM is to acquire Cognos in an all-cash transaction at a price of approximately $5 billion USD. The acquisition, which has been on the cards for a considerable time, is subject to Cognos shareholder approval, regulatory approvals and other customary closing conditions is expected to close in the first quarter of 2008.

IBM says that the acquisition of Cognos supports IBM's Information on Demand strategy, a cross-company initiative announced early in 2006 that combines IBM's strength in information integration, content management and business consulting “to unlock the business value of information.” Cognos, represents IBM's 23rd acquisition in support of this strategy.

IBM said the acquisition fits squarely within both its acquisition strategy and capital allocation model, and that it will contribute to the achievement of the company's objective for earnings-per-share growth through 2010.

"Customers are demanding complete solutions, not piece parts, to enable real-time decision making," said Steve Mills, senior vice president and group executive, IBM Software Group. "IBM has been providing Business Intelligence solutions for decades. Our broad set of capabilities — from data warehousing to information integration and analytics — together with Cognos, position us well for the changing Business Intelligence and Performance Management industry. We chose Cognos because of its industry-leading technology that is based on open standards, which complements IBM's Service Oriented Architecture strategy."

Following completion of the acquisition, IBM intends to integrate Cognos as a group within IBM's Information Management Software division, focused on Business Intelligence and Performance Management. IBM also will appoint current Cognos President and CEO, Rob Ashe, to lead the group, reporting directly to General Manager, Ambuj Goyal.

Cognos has approximately 4,000 employees worldwide and serves more than 25,000 customers. IBM and Cognos have partnered for more than 15 years, with extensive technical integrations and eight pre-integrated joint solutions already supporting many joint customers, such as New York City Police Department, Blue Cross and Blue Shield of Tennessee, Canadian Tire, MetLife, and Bayer UK.

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