IBM completes Telelogic buy

Telelogic will report to the IBM Rational Software unit

IBM has completed its approximately US$845 million tender offer for shares of tools maker Telelogic, IBM said.

With the acquisition, IBM moves into the fast-growing market of software development for non-computer devices, such as home appliances, car anti-locking braking systems, and navigation systems. Other markets where IBM can make headway include retailers, medical systems, airplanes, consumer electronics, space telescopes, and robots, IBM said.

"Telelogic is an important element of our software and systems development and delivery strategy," said Daniel Sabbah, general manager, IBM Rational Software, in a statement released by the company. "Software is at the heart of embedded devices and systems. Whether it's used to develop the next generation of communication devices or systems for space exploration, this IBM technology has important implications for society."

The marriage of hardware and software, such as with the Apple iPhone, is creating an enormous market opportunity, IBM said. Telelogic's expertise in complex systems development will boost IBM's opportunity and leadership in the embedded and complex systems development space, said IBM. With Telelogic, IBM can accelerate innovation of products that rely on software, the company said.

Neither Microsoft nor HP have the integrated software and systems capabilities as IBM has in this arena, IBM said.

The tender offer for Telelogic was announced June 11, 2007. The original offer of US$745 million rose to $845 million because of currency fluctuation, IBM said. Telelogic will report to the IBM Rational Software unit.

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