International Business Machines Corp. (IBM) agreed to buy Sterling Commerce from AT&T Inc. for $1.4 billion. The transaction will likely close in the second half of 2010, the companies said.
IBM has spent nearly a lot on deals in the first quarter as it did last year. The company said that by 2015, it would spend $20 billion on acquisitions. Recently, IBM is into the software business, which has been the most profitable and fastest growing segment. IBM is moving away from the hardware business, after dropping its computer business in 2004 to Lenovo.
The Sterling deal ranks among the highest in recent years. Sterling Commerce is a technology company that connects businesses with their suppliers, customers and partners to improve efficiencies.
AT&T expects to gain a $750 million increase on the transaction once it’s completed. 2,500 Sterling employees towill be transferred to IBM.
This acquisition is necessary for IBM to stay on top of the competition with giant companies like Hewlett-Packard Co. and Cisco Systems Inc.
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