IBM acquires French software firm ILOG for $340 million

29 July 2008

In an all-cash deal valued at euro 215 million ($340 million / Rs1440 crore) IBM is acquiring French logistics and back office software developer, ILOG, in a bid to strengthen its portfolio of business process management software. Thi is IBM's 12the acquisition during the year.

Underr the deal IBM will pay ILOG shreholders euro 10 per share, representing  a premium of a 37 per cent premium to the closing price on Friday, 25 July, or a  56 per cent compared with Ilog's one-month average closing share price prior to July 28.

The cash tender offer will be at a price of €10 per ordinary share and the dollar equivalent per ADS.

ILOG's board of directors has approved the transaction between the two companies and, subject to the receipt of a satisfactory fairness opinion regarding the financial terms of the offer, is expected to give a final recommendation prior to 15 September, following which the offer should be filed with the French stock exchange regulator, AMF.

IBM has received commitments from certain shareholders to tender their shares to the contemplated offer, which represent approximately 10 percent of ILOG's issued share capital.

The public tender offers will be conditional upon US and EU antitrust clearances and a 66.67 per cent share capital and voting rights minimum tender acceptance condition (on a fully diluted basis). The offer in France will only be opened for acceptances once the AMF and the French ministry of economy have granted their respective clearances.