IBM Corp.'s latest acquisition was venture-backed hosted software vendor Valchemy Inc. for undisclosed terms in September, after a scorching month of M&A activity in August. And as John J. Cala, the head of Armonk, N.Y.-based IBM's M&A consulting practice in the Americas told The Deal in late September, the company has no plans to stop.
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Big Blue's last prize in August was Internet Security Systems Inc., which it grabbed for $1.3 billion. The deal came on the heels of its $1.6 billion purchase of content management company FileNet Inc. on Aug. 10 and that was preceded by a $740 million deal for asset management software group MRO Software Inc.
Also in August, Palo Alto, Calif.-based Hewlett-Packard Co. made a $4.5 billion buy in the sector, taking Mountain View, Calif.-based Mercury Interactive Corp., possibly indicating the sector is heating up.
BIG BLUE ACQUIRER
- On Aug. 1, IBM fed the other acquisition cause close to its heart taking Webify Solutions Inc., a venture-backed on-demand applications developer out of Austin, Texas. Webify provides platforms for companies to build service-oriented architecture, or SOA, an architecture that enables disparate applications to work together.
- IBM has sought to bolster its SOA presence for two years. In April, the tech titan announced five new software releases along with SOA-related training and services. In November, IBM acquired XML hardware company DataPower Technology of Cambridge, Mass. Reports put the deal's value at $100 million.
- IBM is also thought to be in the running for Internet Security Systems Inc., which develops software to protect computer networks.
NOT ONE TO MISS A TREND...
IBM has been on the dealmaking front for years and in 2006, has hit many tech hot spots.
- In January, IBM announced teaming up with Germany's Siemens AG to try its hand at VoIP.
- IBM unveiled efforts in February to sell its software-as-a-service offerings.
- In March, Big Blue took Language Analysis Systems Inc., which makes multi-cultural name-recognition technology, for an undisclosed sum, to complement a January 2005 purchase of Systems Research and Development, or SRD, which provides identity management software and has now been integrated into an IBM unit, its so-called Entity Analytics Solutions business.
Of course, it's all part of an exhaustive hunt for the greats among startup technologies, Steve Mills, senior vice president and group executive for IBM Software,
explained to The Deal back in June. The company has a built-in startup watcher. IBM's venture capital group sells itself as more of a
partner than a VC investor. The company
opened up its entire IP portfolio, some 40,000 patents strong, in December to more than 1,000 startups to see what they could do with it.
IBM may next look to more SOA startups -- two that might be noteworthy include:
- Sunnyvale, Calif.-based Acsera Corp., which does performance monitoring for SOA, and took $14.2 million in a Series B round of funding in June; and
- Los Angeles-based SOA Software Inc., a smaller vendor compared to IBM, which raised $11 million, also in June.
GONE SHOPPING
In the tech world, it seems to be a buyer's market. With SanDisk Corp.'s $1.3 billion bid for Msystems, Advanced Micro Devices Inc.'s $5.4 billion deal for ATI Technologies and HP's Mercury buy all in one week, the industry giants look to be on a bit of a spree.
| Dealwatch executive summary |
Date |
Action |
| 9.26.06 |
IBM takes home Valchemy and eyes more acquisitions. |
| 8.23.06 |
IBM bags Internet Security Systems. |
| 8.10.06 |
IBM acquires Filenet. |
| 8.03.06 |
IBM bags MRO Software. (See related deal memo) |
| 8.01.06 |
IBM takes Webify. |
| 8.01.06 |
IBM may be in the running for ISS, which may be up for sale. |
| 7.31.06 |
Tech firms go shopping. |
| 7.27.06 |
Dealwatchers wonder whether management software is the new sector in play. |
| 7.25.06 |
HP grabs Mercury. (See related deal memo) |
| 4.2006 |
IBM's venture capital group is there to help. |
| 6.14.06 |
IBM's Steve Mills lays out IBM's strategy. |
| 4.2006 |
IBM unveils new SOA products. |
| 3.16.06 |
IBM takes Language Analytics Systems. |
| 2.2006 |
IBM wants companies to turn to it for software-as-a-service. |
| 1.23.06 |
IBM and Siemens say they'll try their hand at VoIP. |
| 12.2005 |
IBM opens its patent portfolio to a host of entrepreneurs. |
| 11.2005 |
IBM takes DataPower, boosting its SOA offerings. |
Source: The Deal |
