Investcorp Technology Partners, the technology investment group of global alternative asset management firm Investcorp, today said that it has agreed to sell its stake in Softek Storage Solutions, a company offering a portfolio of data migration, data replication and disaster recovery software products, to IBM (NYSE:IBM).
The acquisition of Softek by IBM is anticipated to close during the first quarter of the 2007 calendar year, upon receipt of regulatory approvals and completion of other customary closing conditions. Financial terms were not disclosed.
Vienna, Virginia-based Softek's software solutions enable a simple, unified approach when moving and managing data across storage vendor platforms and operating system environments, as part of an information technology (IT) infrastructure change. Using Softek's Nonstop Data Mobility software solutions, clients can improve their ability to migrate data while keeping data online and applications available for end users.
Investcorp, along with co-investors Columbia Capital, Needham Capital Partners and Updata Partners, acquired Softek in March 2004 in a management- led buyout of the company from Fujitsu.
"We are proud of our role in supporting Softek's management team in executing an ambitious business plan that has delivered exceptional operational and financial growth over the past two years," said Alex Guira, an Investcorp Managing Director. "The company has now reached a point where its capabilities may be advanced even further as part of IBM, which, since 1996 has been a Softek global partner using the company's award-winning products to migrate data on more than 1,500 services engagements worldwide.
"The Softek investment is strong demonstration of Investcorp's disciplined approach to investing," said Guira. "In executing the carveout of this established business from Fujitsu, we worked with management to streamline operations and grow profitability thereby creating significant value."
Upon completion of the transaction, Softek will become part of the Storage and Data Services business unit in IBM Global Technology Services.
"Clients increasingly recognize that their digital storage needs are of utmost importance to doing business, and our industry-leading data migration offerings are trusted by the world's top companies," said Steven Murphy, president and chief executive officer of Softek. "We are excited to continue to address these client needs as part of IBM, even as we thank Investcorp and its co-investors in supporting our growth to date."