IBM acquires CrossWorlds for $129 million

IBM is to acquire CrossWorlds to strengthen it’s business in the fast-growing e-business infrastructure software segment.

IBM is to acquire CrossWorlds in a cash transaction valued at $129 million.

The acquisition strengthens IBM’s business in the fast-growing e-business infrastructure software segment. IBM’s WebSphere e-business infrastructure software revenue increased 75% year-to-year in the third quarter of 2001 – the 10th consecutive quarter of double-digit growth. And MQSeries, IBM’s integration software, increased 129% in the same time period.

The acquisition extends the breadth of IBM’s portfolio of e-business infrastructure software, known as middleware. And it addresses a key customer need for solutions that include both application server and integration software.

It is subject to CrossWorlds shareholder and regulatory approvals, and is expected to close in the first quarter of 2002.

CrossWorlds software enables companies to automate business processes that integrate multiple applications, such as those for managing customer relationships and supply chains as well as enterprise resource planning.

CrossWorlds’ software, which supports open Internet standards such as J2EE and XML, also helps businesses integrate processes unique to individual industries such as the telecommunications, financial services and industrial sectors. It has been integrated over the last four years with WebSphere middleware products. For example, CrossWorlds has an OEM agreement with IBM for MQSeries and has added WebSphere Application Server software connectivity to its products.

CrossWorlds, based in Burlingame, California, has 350 employees and a broad group of customers, such as Caterpillar, Siemens and the Whirlpool Corporation. These customers use CrossWorlds and IBM WebSphere products as their e-business infrastructure.

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