Princeton Softech Inc. has once again lost its independence. Tech giant IBM Corp. bolstered its software holdings on Friday when it said it would acquire the privately held Princeton, N.J.-based company, which provides leading data archiving, test data management, data privacy and data classification and discovery software. Financial details were not disclosed. The deal furthers Big Blue's "Information on Demand" business initiative. In a nutshell, Princeton Softech's technology helps customers protect data privacy, and that technology will help boost IBM's ability to offer clients integrated data classification, archiving, and test data management and data privacy sofware. IBM expects to close the deal later in the year. Cravath, Swaine & Moore LLP provided counsel to IBM on the deal. In 2002 Princeton Softech was spun out of its parent, Computer Horizons Corp., and raised $21 million in an initial round from Apax Partners & Co. and LLR Partners Inc.
IBM, one of the most active technology acquirers, has kept a steady pace of purchases in the last year. Last month it acquired Canadian data integration software maker DataMirror Corp. for about $161 million in cash. In June the company agreed to buy security software maker Watchfire Corp. for an undisclosed sum, and it joined with Lehman Brothers Inc. to acquire a 7.7% stake in China-based Kingdee International Software Group Co. Ltd. for $18 million. In January IBM bought privately held data mobility firm Softek Storage Solutions Corp. and Consul Risk Management International BV, a Dutch maker of compliance and security software, both for undisclosed terms. Its last big purchase was completed in October, when it closed a $1.6 billion deal for a FileNet Inc., which makes content management software. —Cheryl Meyer
See Aug. 3 IBM press release
See March 27, 2002, story from TheDeal.com
See July 16 story from TheDeal.com
Tags: IBM, Princeton Softech, acquisition, deals, m&a, mergers, software
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