IBM 2011 Annual Report Download - page 92

Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies90
On January 9, 2012, the company announced it had completed
the acquisition of Platform Computing, a privately held company
headquartered in Toronto, Ontario, Canada. Platform Computing
is a global leader in cluster and grid management software for
distributed computing environments. At the date of issuance of the
financial statements, the initial purchase accounting was not complete
for the Platform Computing acquisition.
On January 11, 2012, the company announced it had completed
the acquisition of Green Hat, a privately held company jointly head-
quartered in London, England and Wilmington, Delaware. Green Hat
helps customers improve the quality of software application by
enabling developers to leverage cloud computing technologies to
conduct testing on a software application prior to its delivery. At the
date of issuance of the financial statements, the initial purchase
accounting was not complete for the Green Hat acquisition
On February 1, 2012, the company completed the acquisition of
Emptoris Inc., a privately held company based in Burlington,
Massachusetts. Emptoris is a leading provider of cloud and
on-premise analytics software that brings more intelligence to
procurement and supply chain operations with spend, supplier and
contract management for Smarter Commerce. At the date of issuance
of the financial statements, the initial purchase accounting was not
completed for the Emptoris acquisition.
On February 10, 2012, the company completed the acquisition
of Worklight, a privately held company based in Israel. Worklight is
a leading provider of mobile software for smartphones and tablets
and will become an important part of the company’s mobility strategy.
At the date of issuance of the financial statements, the initial purchase
accounting was not completed for the Worklight acquisition.
On February 15, 2012, the company announced that it had
completed the acquisition of DemandTec, a public company based
in San Mateo, California. DemandTec delivers cloud-based analytics
software that enables businesses to examine different customer
buying scenarios, both online and in-store. At the date of issuance
of the financial statements, the initial purchase accounting was not
completed for the DemandTec acquisition.
2010
In 2010, the company completed 17 acquisitions at an aggregate
cost of $6,538 million.
Netezza Corporation (Netezza)—On November 10, 2010, the
company completed the acquisition of 100 percent of Netezza, for
cash consideration of $1,847 million. Netezza will expand the company’s
business analytics initiatives to help clients gain faster insights into
their business information, with increased performance at a lower
cost of ownership. Netezza was integrated into the Software segment
upon acquisition, and goodwill, as reflected in the table on page 91,
was entirely assigned to the Software segment. It is expected that
none of the goodwill will be deductible for tax purposes. The overall
weighted average useful life of the identified intangible assets
acquired is 6.9 years.
Sterling Commerce—On August 27, 2010, the company completed
the acquisition of 100 percent of Sterling Commerce, a wholly owned
subsidiary of AT&T, Inc., for cash consideration of $1,415 million.
Sterling Commerce will expand the company’s ability to help clients
accelerate their interactions with customers, partners and suppliers
through dynamic business networks using either on-premise or cloud
delivery models. Sterling Commerce was integrated into the Software
segment upon acquisition, and goodwill, as reflected in the table on
page 91, was entirely assigned to the Software segment. It is expected
that none of the goodwill will be deductible for tax purposes. The
overall weighted average useful life of the identified intangible assets
acquired is 6.9 years.
Other Acquisitions—The Software segment also completed
acquisitions of 10 privately held companies and one publicly held
company: in the first quarter, Lombardi Software, Inc. (Lombardi),
Intelliden Inc. and Initiate Systems, Inc.; in the second quarter, Cast
Iron Systems; in the third quarter, BigFix, Inc., Coremetrics and
Datacap; and in the fourth quarter, Unica Corporation (Unica), a
publicly held company, PSS Systems, OpenPages, Inc. (OpenPages)
and Clarity Systems. Global Technology Services (GTS) completed
an acquisition in the first quarter: the core operating assets of Wilshire
Credit Corporation (Wilshire). GBS also completed an acquisition in
the first quarter: National Interest Security Company, LLC, a privately
held company. Systems and Technology (STG) completed acquisitions
of two privately held companies: in the third quarter, Storwize; and
in the fourth quarter, BLADE Network Technologies (BLADE). All
acquisitions were for 100 percent of the acquired companies.
Lombardi is a leading provider of business process management
software and services, and became part of the company’s application
integration software portfolio. Intelliden is a leading provider of
intelligent network automation software and will extend the network
management offerings. Initiate is a market leader in data integrity
software for information sharing among healthcare and government
organizations. Cast Iron Systems, a leading Software as a Service
(SaaS) and cloud application integration provider, enhances the
WebSphere business integration portfolio. BigFix, Inc. is a leading
provider of high-performance enterprise systems and security
management solutions that revolutionizes the way IT organizations
manage and secure their computing infrastructure. Coremetrics, a
leader in Web analytics software, will expand the company’s business
analytics capabilities by enabling organizations to use cloud
computing services to develop faster, more targeted marketing
campaigns. Datacap will strengthen the company’s ability to help
organizations digitize, manage and automate their information assets.