IBM is to buy business intelligence company Cognos for about $5-billion.
IBM will offer Gonos shareholders $58.00 per share, subject to shareholder and regulatory approval.
IBM wants Cognos to fill out its information on demand strategy, which combines information integration, content and data management and business consulting services to unlock the business value of information.
Cognos will be the 23rd acquisition going into the information on demand strategy and IBM hopes it will enable new business insights to be delivered to a broader set of people across an organization, beyond the traditional users of business intelligence.
"Customers are demanding complete solutions, not piece parts, to enable real-time decision making," says Steve Mills, senior vice-president and group executive of the IBM Software Group.
"IBM's 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.”
With the Cognos acquisition, IBM expects to be the leading provider of technology and services for business intelligence and performance management, delivering a complete, open standards-based platform together with expertise.
IBM will provide broader reach for Cognos solutions across multiple industries and geographies with a more complete set of offerings, including consulting services, hardware, and other middleware software.
Cognos provides a complete business intelligence and performance management platform, fully integrated on an open-standards-based service oriented architecture (SOA), and has a strong history of supporting heterogeneous application environments, consistent with IBM’s approach.
“This is an exciting combination for our customers, partners, and employees. It provides us with the ability to expand our vision as the leading business intelligence and performance management provider,” says Rob Ashe, president and CEO at Cognos. “IBM is a perfect complement to our strategy, with minimal overlap in products, a broad range of technology synergies, and the resources, reach, and world-class services to accelerate this vision."
Once the acquisition is complete, IBM will integrate Cognos as a group within IBM's Information Management Software division.
Cognos has about 4 000 employees worldwide and serves more than 25 000 customers.