August 03, 2006
IBM to Buy MRO Software for $740 Million
IBM to Acquire MRO Software for $740 Million, or $25.80 Per Share, in Cash
ARMONK, N.Y. (AP)—International Business Machines said Wednesday it agreed to buy MRO Software Inc. for about $740 million in cash, expanding IBM’s consulting and computer-services businesses.
IBM, of Armonk, N.Y., plans to pay $25.80 per share for the Bedford, Mass., maker of asset and service management software, which is used to manage asset purchasing. The price represents a premium of 19 percent over MRO’s Wednesday closing price of $21.60.
The deal requires MRO shareholder approval and is subject to regulatory review. The companies expect to close the acquisition in the fourth quarter.
IBM plans to set up MRO as a business unit within its Tivoli software unit.
“The acquisition of MRO Software will strengthen the enterprise systems management capabilities of IBM’s Tivoli software portfolio, which produced double-digit revenue growth for the first two quarters of 2006, and enhance IBM’s already strong asset management consulting capabilities in IBM Global Services,” IBM said in a statement.
MRO reported revenue of $199.2 million in the fiscal year ended Sept. 30. For the first nine months of fiscal 2006, revenue totaled $166.7 million.
