Menu
IBM to buy Ilog for US$340 million

IBM to buy Ilog for US$340 million

IBM has agreed to buy French software company Ilog for around €215 million (US$340 million). IBM plans to combine Ilog's business rules management systems with its own business process management and business optimisation tools, it has announced.

Ilog's business rules management systems (BRMS) could be used to improve and add capabilities to a whole range of IBM product lines, including Tivoli and Lotus, the companies said.

Business process automation systems can replicate the paper-shuffling aspect of a company's systems, but do less well with decisions that rely on human judgment, such as which customers deserve priority treatment, or whether an expense claim conforms to company policy. Business rules management systems seek to handle that dimension.

Last October, IBM competitor SAP bought an Indian BRMS vendor, Yasu Technologies, to improve the capabilities of its NetWeaver enterprise software platform.

IBM's offer for Ilog represents a premium of around 37 percent over Ilog's closing share price on Friday. Ilog's board has approved the deal, and holders of around 10 percent of Ilog's shares have already accepted the offer, IBM said. The deal requires regulatory approval in the US and France, and acceptance from holders of two-thirds of the shares, to go ahead.

Also Monday, Ilog reported revenue of $46.1 million in the quarter ending June 30, and net income of $100,000, compared to revenue of $46.3 million and net income of $1.9 million a year earlier.

BRMS was the weakest product sector, with license and maintenance revenue down 13 percent year on year, while business optimisation revenue grew 13 percent, Ilog said.

The runaway success for Ilog, though, was its supply chain applications business, where revenue grew 35 percent, led by Europe and Asia.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IBMSAPinternational newsilog

Featured

Slideshows

Reseller News Platinum Club celebrates leading partners in 2019

Reseller News Platinum Club celebrates leading partners in 2019

The leading players of the New Zealand channel came together to celebrate a year of achievement at the annual Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months.

Reseller News Platinum Club celebrates leading partners in 2019
Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosted its second annual alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers. Photos by Gino Demeer.

Reseller News hosts alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Show Comments