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IBM to acquire Micromuse

IBM Corp. today announced plans to acquire Micromuse Inc. in an all-cash transaction estimated to be worth approxim...


December 21, 2005  


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IBM Corp. today announced plans to acquire Micromuse Inc. in an all-cash transaction estimated to be worth approximately US$865 million or US$10 per share.

Based in San Francisco, Calif., Micromuse is a provider of network management software used by banks, telecommunications carriers, governments, retailers and other organizations to monitor and manage their technology infrastructures.

The software helps customers manage increasingly complex IT systems that support the proliferation of voice and video traffic, in addition to data, due to the growing adoption of voice over IP (VoIP), audio and video services delivered over the Internet.

“Today’s networks are no longer just pipelines of data — customers are incorporating data, voice and video into their business operations at an astounding pace,” said Al Zollar, General Manager, IBM Tivoli software.

“The proliferation of Internet telephony and video-on-demand are not only changing the way people use information technology, but also how companies manage it.

“The addition of new capabilities raises the complexity of today’s networks, which require real-time network and service management.”

According to the two companies, the delivery of network-based services — such as data, voice and video — over the Internet in real time is creating new avenues for content, such as streaming music videos delivered to cell phones.

It can also enable workers to use mobile devices to access their company’s network, tap into a live video feed of a sales conference, or pose a question to a group via phone or instant message.

The acquisition, which is subject to Micromuse shareholder and regulatory approvals and other customary conditions, is expected to close in the first quarter of the 2006.