IBM pays $1.4bn for Sterling Commerce

Sterling Commerce will be folded into IBM's WebSphere software group

IBM has agreed to pay $1.4bn (£980m) for AT&T subsidiary Sterling Commerce, a specialist in handling transactions between businesses such as supplier purchases, partner transactions and manufacturing material deals.

IBM said that Sterling Commerce will be integrated into its middleware business, particularly its supplier and partner transaction software and service offerings.

The purchase will also new capabilities to IBM's analytics and business process management offerings.

"This acquisition will give IBM new tools to help clients build dynamic business networks that connect partners, suppliers and clients, and deliver a consistent customer experience across channels," said IBM WebSphere general manager Craig Hayman.

"In addition, the fact that much of this can be done in the cloud will make it compelling to large numbers of our customers."

IBM expects to close the transaction sometime in the second half of the year. Once completed, the deal will bring some 2,500 former Sterling Commerce employees into IBM's WebSphere software group.