IBM Closes Telelogic Acquisition

The $845 million purchase will add to IBM's Rational application development tools unit.

IBM has completed its $845 million acquisition of Telelogic.

IBM announced its intent to buy Telelogic in June 2007. Although U.S. regulators did not question the acquisition, the European Commission held the deal up to scrutiny for months while its regulators evaluated possible antitrust issues. The deal passed muster and IBM announced its completion April 3.

Telelogic makes software for developing technical systems and enterprise architecture, with more than 8,000 customers worldwide. It has more than 1,200 employees and operations in 22 countries.

In an interview with eWEEK earlier in 2008, Swati Moran, IBM's market integration lead for the pending Telelogic acquisition, said Telelogic will move under the IBM Rational brand and Telelogic's tools would play a key role in the complex systems development market.

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The Telelogic acquisition will also help IBM officials take part of the Rational product portfolio back to its technical and complex systems roots.

"Telelogic is an important element of our software and systems development and delivery strategy," said Danny Sabbah, general manager of IBM Rational Software. "Software is at the heart of embedded devices and systems."

Venture Development Corporation, a market research firm, in 2005 reported the total market opportunity for embedded software development to be about $51 billion. Embedded Market Forecasters estimated the traditional software development market to be worth about $219.5 million in 2006, down from $292.4 million in 2005.