IBM has announced a deal to buy Telelogic a Swedish provider and developer of software and services, for 5.2 billion Swedish Kronor (378 million).
Telelogic's technology is used largely in the Enterprise Lifecycle Management (ELM) market, Enterprise Architecture, Systems Engineering and general software development, providing solutions to optimise product, systems, and software development lifecycles within business objectives.
"This acquisition will provide our clients with enhanced capabilities to develop and deploy complex systems on a global basis. IBM and Telelogic clients will be able to leverage a broader set of capabilities without the need to replace existing systems," said Anders Lidbeck, chief executive of Telelogic.
Telelogic was founded in 1983, and went public in 1999. Since going public the company has grown relatively quickly reaching high profit margins and developing a large range of ELM products.
As IBM moves away from hardware and becomes more focused on its software, Telelogic could prove to help IBM a great deal in reaching their software profit targets.
"From today's next generation entertainment devices to tomorrow's space-information systems, software is the lifeblood of complex systems," said Dr Danny Sabbah, general manager of IBM's Rational Software division.
The acquisition comes just a week after IBM bought security and compliance software vendor Watchfire.
