IBM said the acquisition of the business-software maker will expand its ability to help businesses create simpler and better communication networks with their customers.
The companies expect the deal to close in the second half of the year. AT&T expects to record a one-time pretax gain of about $750 million in the quarter when the transaction closes.
After the deal closes, about 2,500 Sterling employees will be integrated into the WebSphere organization within IBM's software division.
AT&T shares were flat at $24.86 in premarket trading Monday; IBM stock was lower by 0.1% to $125.24.
AT&T Sell AT&T!: Against the Grain
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