IBM snaps up Ilog for €215m

IBM will use Ilog's tools to bolster existing rules management offerings

IBM is to acquire Ilog, a French-listed business rules management systems and supply chain company, for around €215m.

Ilog produces tools to help managers analyse, plan, track and streamline business processes.

The acquisition will strengthen IBM's business process management and service oriented architecture position by providing customers with rule management tools for information and application lifecycle management, IBM said in a statement.

Business process management software enables managers to examine and automate tasks within an organisation, particularly those done manually or involving significant document processing.

Ilog's tools will be used to bolster IBM's existing rules management offerings, including improved rules and business optimisation capabilities for its WebSphere application development and management platform.

They will also offer better visualisation for Lotus products, enhanced optimisation within Tivoli network infrastructure management solutions, and efficient supply chain management assets for planning and scheduling.

The deal values Ilog at a 37 per cent premium above its pre-announcement share price, and has already been approved by Ilog's board.

A Memorandum of Understanding between the two companies has been filed with the US Securities and Exchange Commission.

The acquisition has yet to receive the approval from the US and EU mergers and monopolies authorities.