IBM Buys Integration Company CrossWorlds
Beefing up the business process integration capabilities for its WebSphere integration software line, IBM announced this morning that it is purchasing CrossWorlds Software Inc.
The $129 million acquisition strengthens IBMs position in the fast-growing e-business infrastructure market.
CrossWorlds, which competes against Tibco Software Inc., Vitria Technology Inc. and webMethods Inc., provides connectivity tools that integrate applications like customer relationship management and supply chain management with enterprise software. CrossWorlds also links companies online business processes with suppliers and customers.
The Burlingame, Calif., company has customers in the telecommunications, financial services and manufacturing verticals.
IBM, of Armonk, N.Y., has a history with CrossWorlds. For the past four years it has integrated CrossWorlds software with its WebSphere middleware products.
Moving forward, Big Blue plans to combine CrossWorlds business operations and 350 employees with the existing IBM division responsible for business integration software. The CrossWorlds sales force will be integrated with IBMs.
IBM also plans to expand the CrossWorlds product line and seek new partnerships with global systems integrators. Likewise, IBM Global Services will include services capabilities for CrossWorlds software in its enterprise application integration practice.
Integration software lately has been a winner for IBM. While the companys overall software revenues grew 10 percent in the third quarter, revenue from two important integration components WebSphere and MQ Series grew 75 percent and 129 percent, respectively.
The acquisition is expected to close the first quarter of 2002.