Tibco/Talarian deal challenges IBM

Enterprise integration solutions provider Tibco Software is to acquire messaging and content specialist Talarian Corporation in a stock and cash deal valued at about £80m ($115m).

Up till now the two companies have been direct competitors particularly in the financial services, telecoms and aerospace sectors.

Tibco said that Talarian would bring it world-class technology, talented employees and 300 customers, many of which are blue chip organisations.

Both companies offer message-oriented middleware software and the takeover could strengthen Tibco's competitive position against market leader IBM.

"Tibco understands messaging and the value of Talarian's SmartSockets product line," said Tom Laffey, Talarian's founder and chief technology officer. "This functionality will greatly benefit our joint customers by adding functionality to an already world-class solution set from Tibco."

Tibco will pay $5.30 per share, half in stock and half in cash, for all of Talarian's outstanding shares. Talarian's stockholders, who hold about 35 per cent of the shares, have already agreed to support and vote in favour of the deal.

Among Talarian's customers are Visa, the New York Stock Exchange, Credit Suisse First Boston, Boeing, Lockheed Martin, Southwest Airlines, Nortel, Hewlett Packard and MCI.

Tibco's 1400 users include big names such as US Bank, Delta Airlines, Intel, BP, eBay, AT&T and NEC.