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IBM to Acquire Telelogic to Advance Global Software Delivery Strategy


ARMONK, NY & MALMO, SWEDEN -IBM (NYSE: IBM) today announced a cash tender offer for all outstanding shares of Telelogic AB (Nordic Exchange/MidCap/TLOG). The offer price is 21 Swedish Kronor per share, for an aggregate purchase price of approximately 5.2 billion Swedish Kronor (or approximately $745 million).

Telelogic is a leading provider of software development solutions, with more than 8,000 customers worldwide, primarily in the aerospace and defense, telecommunications and automotive industries. Headquartered in Malmö, Sweden, with U.S. headquarters in Irvine, California, Telelogic has more than 1,100 employees and operations in 22 countries worldwide. In 2006, Telelogic reported revenues of approximately $208M, including approximately $89M in license revenue and representing year-to-year growth of 20% overall.

Telelogic products help organizations define, model, build, test, deliver and govern the development of software used in complex systems such as aircraft radar or a car’s anti-lock braking system. Together, IBM, Telelogic, and business partners, will accelerate a customer’s ability to develop high-quality complex systems. Clients will benefit from the combined technologies and services of both companies, providing them a wider range of software and system development capabilities used to build complex systems.

For example, a consumer electronics company could use IBM and Telelogic technologies to help design the software in an intelligent home network that controls the entertainment devices, security systems, appliances, and lighting. An automotive manufacturer would use IBM and Telelogic solutions to help build and deliver software that runs the navigation systems in vehicles.

“From today’s next generation entertainment devices to tomorrow’s space-information systems, software is the lifeblood of complex systems,” said Dr. Danny Sabbah, general manager, IBM Rational Software. “IBM’s acquisition of Telelogic will complement our entire portfolio to help our clients drive efficient and effective software development processes that are vital to product delivery.”

“This acquisition will provide our clients with enhanced capabilities to develop and deploy complex systems on a global basis,” said Anders Lidbeck, president and CEO, Telelogic. “IBM and Telelogic clients will be able to leverage a broader set of capabilities without the need to replace existing systems.”

IBM will acquire the outstanding shares of Telelogic AB after IBM obtains acceptance from more than 90% of the stock ownership in Telelogic, after receipt of all necessary regulatory, governmental or similar clearances, approvals and decisions, in each case on terms which in IBM’s opinion are acceptable, and after the offer has been declared unconditional. Upon acquisition close, Telelogic will become part of the Rational Software division of IBM, reporting to Dr. Danny Sabbah, general manager of IBM Rational Software.

This is not the formal announcement of the offer for Telelogic AB. The formal announcement of the offer, that has been drawn up and made public in accordance with Swedish laws and regulations, can be found on


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