IBM to Acquire Solid Information Technology to Broaden Information on Demand Portfolio
Helsinki, Finland and Armonk, NY - 21 Dec 2007: IBM (NYSE: IBM) today announced it has entered into an agreement to acquire Solid Information Technology, a privately held company based in Cupertino, California, and Helsinki, Finland, that provides in-memory database software. Financial details were not disclosed.
The acquisition of Solid Information Technology supports IBM's global Information on Demand strategy by adding real-time data access capabilities to the company's broad portfolio of database and information management offerings. Solid Information Technology's software uses in-memory database technology to quickly retrieve data from a computer's memory (or RAM). Using this technology, businesses can access and store data at speeds up to ten times faster than using traditional disk-based database systems. Additionally, Solid Information Technology's database server can recover from system failure within milliseconds, providing nearly uninterrupted (99.999%) data availability. The software maximizes use of system resources while requiring almost no hands-on administration, resulting in much lower total cost of ownership.
Solid Information Technology is the twelfth strategic acquisition announced by IBM in 2007. IBM's acquisition of Solid Information Technology supports the company's growth strategy and capital allocation model, and it is expected to contribute to the achievement of the company's objective for earnings-per-share growth through 2010. Additionally, Solid Information Technology will augment the company's software business, which currently provides 20 percent of total sales and 40 percent of IBM's profit.
Hundreds of customers use Solid Information Technology software in over three million deployments worldwide where high speed and high availability are critical to their success. The software supports many consumer applications and services in telecommunications, retail, finance, healthcare, and other industries by allowing nearly instantaneous access to data for mobile phones, Internet-based calling, online shopping, stock and investment transactions, and other applications. The combination of IBM and Solid Information Technology software will provide the technology and resources to broaden the opportunity for Solid Information Technology software.
IBM plans to integrate Solid Information Technology's product offerings into IBM's Software Group as part of its Information Management Software division. Solid Information Technology's software complements IBM's portfolio by combining the speed and versatility of in-memory database technology with the enterprise-wide scalability and persistence of IBM's disk-based data server offerings -- DB2 and Informix Dynamic Server. This combination will provide customers with real-time access to the information they need in order to quickly respond to changing demands, rapidly capitalize on new business opportunities, and improve business results.
"Customer demand for high speed, low-latency, reliable access to business information is growing exponentially as organizations of all sizes strive to ensure real-time access to enterprise data," said Ambuj Goyal, general manager, IBM Information Management. "Together, IBM and Solid Information Technology will provide a comprehensive set of capabilities that enable companies to deliver trusted information in real-time to every person and every business transaction."
"Solid Information Technology is pleased that our proven technology will add strategic value and complement IBM's portfolio of world-class data server products," said Sam Spadafora, chairman, Solid Information Technology. "We look forward to continuing to serve our existing customers while we also address the needs of a broader customer set, all of whom will benefit from the fast, always-on database technology in which Solid Information Technology has invested for the past 14 years."
IBM's acquisition of Solid Information Technology builds upon an existing relationship between the companies. Solid Information Technology and IBM already partner on information management solutions that provide advanced capabilities to customers, including an offering for telecommunications service providers that uses Solid Information Technology software and IBM BladeCenter technology to deliver the performance, reliability, and affordability demanded by mission critical telecommunications applications.
The acquisition is subject to customary closing conditions and is anticipated to close in the first quarter of 2008.
The desire by businesses to access, manage and deliver information more efficiently is driving rapid change in the information technology marketplace. Companies grappling with government mandates and business demands are striving to capture and integrate information in a more seamless, real-time fashion across their enterprises. IBM's Information on Demand approach combines industry-specific expertise with advanced software, open standards and storage technology -- integrated via a services oriented architecture -- to manage, secure, and deliver information as a service to solve business challenges.
For more information, go to http://www-306.ibm.com/software/data
IBM Media Relations