27 March 2017
visit nextgenbanking.co.uk

IBM to acquire Ilog

28 July 2008  |  6051 views  |  0 handshake

IBM has agreed a deal to acquire Ilog, a French provider of business process management (BPM) technology, for around EUR215 million.

The cash tender offer of EUR10 per share - which has been approved by Ilog's board - represents a 37% premium to the vendor's closing price on Friday.

Founded in 1987 with headquarters in France and California, Ilog employs around 850 staff. The company has a strong footing in the banking industry with clients including ABN Amro, Bank of America, Citi, Deutsche Bank and card firm Visa.

The IBM deal is conditional upon US and EU antitrust clearances and acceptances from shareholders representing 66.67% of the stock capital. IBM says it has already received commitments from shareholders representing 10% of Ilog stock.

The Ilog board is expected to give a final recommendation before 15 September, after which the offer will be filed with the French stock exchange authority.

Following the acquisition, IBM says it will combine its BPM, business optimisation and service oriented architecture (SOA) technology with Ilog's software to help clients deliver critical business information in real-time.

"IBM has partnered with Ilog for over a decade, and by adding Ilog's capabilities to IBM's software portfolio, this is a great combination to provide value to our clients," adds Tom Rosamilia, general manager, IBM WebSphere.

But news of the proposed acquisition comes as Ilog reports a drop in full year net profit to $0.5 million from $4.9 million in fiscal 2007 as the credit crunch hit its business with banks.

"In the fourth quarter, we faced a challenging economic environment, notably in the financial sector, which remains a key source of revenues for Ilog," says Pierre Haren, chairman and CEO, Ilog, in a statement.

In a separate move IBM says it will establish a technology centre in Shanghai that will help financial services clients in China address "issues in core banking systems and payments".

IBM says the new facility will bring together business and technology experts to design and implement next generation payment and core banking systems for China's leading banks.

IBM operates similar banking technology facilities in Korea, Vietnam and South Africa as well as in Silicon Valley and Poughkeepsie in the US.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Banco Espírito Santo expands IBM IT outsourcing contract

Banco Espírito Santo expands IBM IT outsourcing contract

18 July 2008  |  5221 views  |  0 comments
Thailand's Thanachart signs IT services deal with IBM

Thailand's Thanachart signs IT services deal with IBM

11 July 2008  |  3838 views  |  0 comments
IBM wins Banco Fondo Comun IT outsourcing deal

IBM wins Banco Fondo Comun IT outsourcing deal

08 July 2008  |  4842 views  |  0 comments
IBM buys market data house InfoDyne

IBM buys market data house InfoDyne

30 April 2008  |  5293 views  |  0 comments
Hanseatic Bank automates credit underwriting with ILog

Hanseatic Bank automates credit underwriting with ILog

13 November 2003  |  2763 views  |  0 comments
Financial Fusion and ILog partnership aims for 'agile STP'

Financial Fusion and ILog partnership aims for 'agile STP'

28 May 2003  |  3264 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comvisit abe-eba.eu

Top topics

Most viewed Most shared
French retailer Carrefour launches online bank accountFrench retailer Carrefour launches online...
57378 views comments | 16 tweets | 36 linkedin
European Commission opens public consultation on fintechEuropean Commission opens public consultat...
9734 views comments | 43 tweets | 26 linkedin
Can banks really win in the payments business of the future? – new Finextra reportCan banks really win in the payments busin...
8955 views comments | 23 tweets | 37 linkedin
MAS to roll out national KYC utility for SingaporeMAS to roll out national KYC utility for S...
8108 views comments | 19 tweets | 28 linkedin
SecureKey taps IBM to put identity on the blockchainSecureKey taps IBM to put identity on the...
7412 views comments | 22 tweets | 15 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job