IBM to Acquire Software Co. Micromuse

IBM is on a Holiday spending spree.  Just one day after announcing the purchase of business software developer, Bowstreet, the computer giant unveiled plans to purchase yet another, Micromuse, Reuters reports via the Boston Globe.

IBM will pay $865 million, or $10 per share, to fill a hole in its Tivoli software line.  Businesses use Tivoli to manage large computer networks, a niche in which Micromuse specializes.  Tivoli is in competition with companies like BMC Software, Computer Associates and HP.  In April, Computer Associates agreed to purchase Micromuse rival, Concord Communications.

The Micromuse deal is the eleventh software company acquisition for IBM in 2005, according to the report.  The company has acquired nearly 40 software companies over the past five years.

Micromuse software can already be purchased through IBM due to a joint venture between the two companies. Steve Mills, an IBM senior vice president who is in charge of the company’s software business, says the Micromuse deal will give IBM a more noticeable presence in the rapidly growing software industry.  Mills said the company is looking to purchase more software companies though he did not mention specifics, Reuters reports.

By Al Sacco