IBM to acquire ILOG in $340 million deal by Radka Konkolova

Our future is in electronics and micro components. And many companies of these days have realized this. So there are many firms on the market producing and distributing computers, chips and other electronics, what means, there is relatively strong competition among them. And later it is more than sure, that those weaker ones will be either bankrupted or sold to a strength firm, what means its acquisition. So this way is better and more advantageous for both sides, although for purchasing company it means quite big one-shot costs. But it will come back soon.

American company IBM which produces computers, notebooks and components for them announced acquisition the French software maker Ilog. This is very perspective step for both companies as well as for their customers. And acquisition is already approved by the management of Ilog.

IBM decided to do so because it wants to achieve the majority of the market, so it has bought many smaller and not as strong business partners, what is part of its tactics, which should help it to reach dominant position on world computer market. Since 2003 IBM has invested about 21 billion dollar to buy 70 companies which used to be its business partners.

IBM’s connection with Ilog should allow spreading of the range of the market and use the potential in the best way. So this helps IBM and its parts to reach higher gains, which can be reinvested to another extension and split among the shareholders, too.

The acquisition should be done of value of $340 million, what is quite big amount. IBM offers stakeholders of these French software company 10 Euro per share, what means premium in level of approximately 53 per cent. Ilog's software is popular because it allows businesses to more effectively manage and automate the decision making process, so IBM has probably chosen the best choice from all.

So you can see that almost every bigger company as IBM is trying to do their best in this direction and also wants to eliminate competitors by doing such acquisitions. Consequently, as I have already mentioned it is advantageous and also better for both companies as well as for their current and future clients. You can see it on the case, when IBM purchased computer maker Lenovo, what was also one of the waves of always continual tactics of acquisitions. But not only IBM does so, so maybe there will be much less computer companies in the future…


related story: http://news.yahoo.com/s/cnet/20080728/tc_cnet/8301100131000045092;_ylt=AvQRNpGJcDIp4.ayN61LwICs0NUE

by Radka Konkolova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova