IBM to Acquire Informix Unit for $1 Billion
Chris Frankie
04/24/01 - 10:33 AM EDT
IBM (IBM Quote) agreed to acquire the database software unit of
Informix (IFMX Quote) in a cash deal valued at $1 billion.
IBM said the acquisition will strengthen its position in the distributed database business, a key strategic priority for the company. "This acquisition ... allows IBM to bring the benefits of leadership database technologies to more customers faster," the company said in a statement.
IBM said it will integrate the Informix database business operations and personnel into its IBM Software data management division. Following the sale of the database business to IBM, Informix will focus on its other independent operating business,
Ascential Software. Once the companies close the deal, Informix will change its name to Ascential Software.
Informix also posted earnings today, beating the consensus estimate by a penny. The company earned $18.3 million, or 6 cents a share, while Wall Street was looking for income of 5 cents. The company earned $27.1 million, or 9 cents a share, in the year-ago period.
Shares of IBM gained $2.27, or 2%, to $114.27 in recent
New York Stock Exchange trading, while Informix lost $1.67, or 23.8%, to $5.36 on the
Nasdaq.
