March 21, 2005

IBM buys Ascential

Big Blue to add acquired technology to its information integration family

IBM snapped up Ascential Software last week for $1.1 billion.

Big Blue plans to add Ascential’s products -- which are used to build data warehouses, to feed data into BI systems, and to consolidate applications -- to its information-integration lineup.

The Ascential Enterprise Integration Suite complements IBM’s WebSphere Information Integrator. Jointly, the companies have more than 550 customers.

“IBM has been building up this side of its business for some time but had a big hole in their portfolio that could be filled by Ascential,” said Ian Wesley, research director at Ovum.

According to AMR Research, the combined stack will address a wider range of integration problems than either company could tackle alone.

Ascential customer Mannie Goldberg, director of data resource management for gas and electric utility Nstar, said his primary concern is that IBM preserves Ascential’s technology and customer relationships.

“I’m interested in knowing what IBM’s plan is for the product,” Goldberg said.

The deal -- subject to approval from shareholders and regulators -- is expected to close in the second quarter of this year.

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