IBM to Acquire Corio

The tech giant moves to bolster its application services business.
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IBM

(IBM) - Get Report

on Tuesday said it was acquiring

Corio

(CRIO)

for $182 million in cash as the tech giant moved to bolster its application services business.

The deal is worth $2.82 a share and is expected to close within 60 days, pending the necessary approvals.

"A marketplace shift is under way because clients of all sizes are under pressure to do more, faster, with application software to improve business performance," IBM said. "The acquisition is expected to strengthen IBM's application services portfolio by adding Corio's capabilities and technologies which facilitate rapid application deployment and automated application management for clients."

Corio is a leading enterprise application management provider.

Corio shares jumped 72 cents, or 35%, to $2.77, while IBM rose 28 cents, or 0.3%, to $92.07.