IBM acquisition of Cognos gets green light

The European Commission has approved IBM's proposed acquisition of business intelligence firm Cognos.

The deal will see Big Blue buy up all of the outstanding common shares of
Cognos for $58.00 in cash for each Cognos common share, equating to a total cash outlay of approximately $5bn.

Cognos has now received shareholder and Court approval, however there are still a few hurdles to overcome before the deal is completed.

The transaction remains subject to the receipt of certain other regulatory approvals and clearances, including approval by the Minister of Industry under the Investment Canada Act, as well as other customary closing conditions.

It is not thought that there will be any complications, and the acquisition is expected to be completed by the end of March 2008.