IBM to Buy Telelogic for $745 Million

The deal represents Big Blue's largest tools acquisition since Rational in 2002.

ORLANDO, Fla.—IBM plans to acquire Telelogic for about $745 million.

IBM announced the move at its Rational Software Development Conference here June 11. IBMs Rational business unit will integrate the Telelogic line of products with its own.

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Telelogic, with North American headquarters in Irvine, Calif., provides software development solutions, with more than 8,000 customers worldwide, primarily in the aerospace and defense, telecommunications and automotive industries. It has more than 1,100 employees and operations in 22 countries worldwide. In 2006, Telelogic reported revenues of about $208 million, including about $89 million in license revenue, representing year-to-year growth of 20 percent.

Telelogic is IBMs most ambitious tools acquisition since the Armonk, N.Y., company acquired Rational in 2002 for $2.1 billion.

Telelogic products help organizations define, model, build, test, deliver and govern the development of software used in complex systems such as aircraft radar or a cars anti-lock braking system. Together, IBM, Telelogic and business partners will accelerate a customers ability to develop high-quality complex systems, IBM officials said.

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