Tuesday, November 13, 2007

IBM buys Cognos for US$5 Billion

Did you hear the big news today: IBM buys Cognos! So, why is this interesting? IBM has been on a bit of shopping spree in terms of getting a handle on the enterprise content as they did with the FileNet acquisition of last year. Cognos has 25000 customers tracking their business transactions daily! Cognos is roughly a $1 Billion company so IBM got them at 5X as the M&A folks like to say. On one side, this is a great play for IBM and on another it means a bit of interruption for Cognos as customers are always affected by M&As. It is also interesting to see yet another great Canadian company acquired. On the plus side, I saw some nice demos at CTIA 2007 from Cognos linking up to mobile devices like the Berry and Nokia. So they definitely are making nice moves. Let the consolidations continue as long as customers still get access to innovative solutions!

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