Largest IBM Deal Ever: $5B for Cognos
By BRIAN BERGSTEIN
AP Technology Writer
Latest News
Largest IBM Deal Ever: $5B for Cognos
BOSTON (AP) -- IBM Corp. is making its largest acquisition ever, a deal announced Monday to buy Cognos Inc. for $5 billion in cash in hopes of keeping up with rivals in "business intelligence" software.
The acquisition would follow similar moves in the same market this year. SAP AG recently linked up with Business Objects SA for $7 billion and Oracle Corp. grabbed Hyperion Solutions Corp. for $3.3 billion. Cognos shares had soared recently on expectations that it, too, would be acquired. They leaped another 8 percent on Monday's news.
IBM is offering $58 per share for Ottawa-based Cognos, a 9 percent premium over the U.S.-listed company's $52.98 closing price on Friday. Cognos was trading in the mid-$40s before SAP's bid for Business Objects was announced in October, accelerating expectations for consolidation in business-intelligence software.
Cognos shares rose $4.17, or 7.9 percent, to close at $57.15 Monday. IBM shares rose 1.2 percent, or $1.20, to end at $101.45.
Founded in 1969, Cognos has 4,000 employees worldwide and U.S. headquarters in Burlington, Mass. It earned $116 million on $979 million in revenue in its last full fiscal year.
Note: hmm...$5b in cash for a thirty-eight year old company that generated approx $1b in sales; and $116m in earnings. At present earnings...only 43 YEARS to regain the $5b with static money. WTF !!
posted by Richard at
Monday, November 12, 2007
1 Comments:
I've have received responses from MarketBlast support that were barely in english. I doubt english is the primary language of the present team.
Post a Comment
Links to this post:
Create a Link
<< Home