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List of mergers and acquisitions by IBM
List of mergers and acquisitions by IBM
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IBM has undergone a large number of mergers and acquisitions during a corporate history lasting over a century; the company has also produced a number of spinoffs during that time.

The acquisition date listed is the date of the agreement between IBM and the subject of the acquisition. The value of each acquisition is listed in USD because IBM is based in the United States. If the value of an acquisition is not listed, then it is undisclosed.

Precursors 1889–1910

[edit]

Herman Hollerith initially did business under his own name, as The Hollerith Electric Tabulating System, specialising in punched card data processing equipment.[1] In 1896 he incorporated as the Tabulating Machine Company.

  • 1889 Bundy Manufacturing Company incorporated.
  • 1891 Computing Scale Company incorporated.
  • 1893 Dey Patents Company (soon renamed the Dey Time Register Company) incorporated.
  • 1894 Willard & Frick Manufacturing Company (Rochester, New York) incorporated.
  • 1896
    • Detroit Automatic Scale Company incorporated.
    • Hollerith incorporates the Tabulating Machine Company. Will be reincorporated in 1905.
  • 1899 Standard Time Stamp Company acquired by Bundy Manufacturing Company.
  • 1900
    • International Time Recording Company incorporated, acquiring the time-recording business of the Bundy Manufacturing Company and the Willard & Frick Manufacturing Company (Rochester).
    • Chicago Time-Register Company acquired by International Time Recording Company.
    • Dayton Moneyweight Scale Company acquired by Computing Scale Company.
    • Detroit Automatic Scale Company acquired by Computing Scale Company.
  • 1905 Hollerith reincorporates as The Tabulating Machine Company.[2]
  • 1907 Dey Time Register Company acquired by International Time Recording Company.
  • 1908 Syracuse Time Recorder Company acquired by International Time Recording Company.

Since the 1960s or earlier, IBM has described its formation as a merger of three companies: The Tabulating Machine Company (1880s origin in Washington, DC), the International Time Recording Company (ITR; 1900, Endicott), and the Computing Scale Company of America (1901, Dayton, Ohio).[3][4][5] However, there was no merger, it was an amalgamation, and an amalgamation of four, not three, companies.[6] The 1911 CTR stock prospectus states that the Bundy Manufacturing Company was also included.[7] While ITR had acquired its time recording business in 1900 Bundy had remained a separate entity producing an adding machine and other wares.

CTR owned the stock of the four companies; CTR neither produced nor sold any product; the four companies continued to operate, as before, under their own names.

Acquisitions during 1912–1999

[edit]

1912–1929

[edit]
  • 1917
    • American Automatic Scale Company acquired as International Scale Company.
    • CTR consolidates three already-existing Canadian companies: The Canadian Tabulating Machine Co., Ltd, the International Time Recording Co. of Canada, Ltd., and the Computing Scale Co. of Canada, Ltd., in a new holding company, International Business Machines Co., Ltd.[8]
  • 1921
    • Pierce Accounting Machine Company (asset purchase).
    • Ticketograph Company (of Chicago).
  • 1923
  • 1924
    • CTR was renamed "IBM".

1930–1949

[edit]
  • 1930 Automatic Accounting Scale Company.
  • 1932 National Counting Scale Company.
  • 1933 The separate companies were integrated in 1933 as IBM and the holding company eliminated.[10]
  • 1933 Electromatic Typewriters Inc. (See: IBM Electromatic typewriter)
  • 1941 Munitions Manufacturing Corporation.

1950–1969

[edit]

1970–1989

[edit]

1990–1999

[edit]
  • 1993
    • CGI Informatique (France), bought in 1993, ran independently until 1996, and was then progressively absorbed by IBM, country by country, this process being achieved in 1999.
  • 1994
    • Transarc (Transarc Corporation bought by IBM in 1994, became part of IBM proper in 1999 as the IBM Pittsburgh Lab)[11]
  • 1995
  • 1996
    • Wilkerson Group
    • Tivoli Systems, Inc. for $743 million.
    • Data Sciences Ltd, prior to 1991 comprising Thorn EMI Software, Datasolve and the Corporate Management Services Division of Thorn EMI, for £95 million.[12]
    • Object Technology International (OTI) is acquired by IBM
    • Cyclade Consultants (Netherlands)
    • Fairway Technologies
    • Professional Data Management, Inc. / LifePRO[13]
  • 1997
    • Software Artistry for $200 million.
    • Unison Software.
    • Dominion Semiconductor (Manassas, VA) is created by forming a 50/50 joint venture with Toshiba to produce 64MB and 256MB DRAM chips. Administrative offices are located in Building 131 the former IBM Federal Systems campus now primarily owned by Lockheed Martin; the new state-of-the-art fabrication facility was built from on adjacent land.
  • 1998
    • CommQuest Technologies.
    • DataBeam Corporation, Lexington, KY
    • Ubique Ltd., Israel
  • 1999

Acquisitions from 2000 - 2019

[edit]

Number of acquisitions per year according to table below:

  • In 2019 IBM acquired 1 company
  • In 2018 IBM acquired 3 companies
  • In 2017 IBM acquired 3 companies
  • In 2016 IBM acquired 12 companies
  • In 2015 IBM acquired 13 companies
  • In 2014 IBM acquired 4 companies
  • In 2013 IBM acquired 9 companies
  • In 2012 IBM acquired 9 companies
  • In 2011 IBM acquired 8 companies
Acquired on Company Business Country Value (USD) References
June 7, 2001 Mainspring Business strategy consulting USA $80,000,000 [14]
July 2, 2001 Informix Corporation Database software USA $1,000,000,000 [15]
Jan 14, 2002 CrossWorlds Software, Inc. Software USA $129,000,000 [16]
June 25, 2002 Metamerge Identity management NOR [17]
Aug 19, 2002 Trellisoft, Inc. Enterprise storage USA [18]
Sep 12, 2002 Holosofx, Inc. Business Process Management USA, EGY [19]
Oct 2, 2002 PWC Consulting from PricewaterhouseCoopers Business Consulting and Technology Services USA $3,500,000,000 [20]
Oct 6, 2002 Access360 Software USA [21]
Oct 7, 2002 EADS Matra Datavision Product lifecycle management USA [22]
Nov 15, 2002 Tarian Software Records Management CAN [23]
Feb 21, 2003 Rational Software Corporation Software Development USA $2,100,000,000 [24]
May 14, 2003 Think Dynamics Software CAN [25]
July 1, 2003 Information Laboratory Software USA [26]
July 15, 2003 Aptrix Software AUS [27]
Oct 17, 2003 CrossAccess Corporation Enterprise Information Integration USA [28]
Nov 13, 2003 Productivity Solutions, Inc. Automated Self-Checkout Systems USA [29]
Dec 17, 2003 Green Pasture Software, Inc. Content management software USA [30]
April 6, 2004 Trigo Technologies Product information management USA [31]
April 7, 2004 Daksh e-Services BPO Services IND $170,000,000 [32]
April 13, 2004 Business Continuity Services unit of Schlumberger IT Services FRA [33]
June 7, 2004 Candle Corporation Infrastructure management USA [34]
July 14, 2004 Alphablox Corporation Business intelligence USA [35]
July 29, 2004 Cyanea Systems Application management software USA [36]
Oct 7, 2004 Venetica Enterprise Information Integration USA [37]
Nov 19, 2004 Systemcorp ALG Ltd. Project Portfolio Management (PPM) software CAN [38]
Nov 23, 2004 Liberty Insurance Services Business process services USA [39]
Dec 1, 2004 Maersk Data and DMdata from Maersk IT Services DEN [40]
Dec 13, 2004 KeyMRO Procurement Services FRA [41]
Jan 7, 2005 Systems Research & Development Identity management USA [42]
March 16, 2005 Corio Application Services USA $182,000,000 [43]
April 29, 2005 Ascential Software Corporation Enterprise Information Integration USA $1,100,000,000 [44]
May 10, 2005 Gluecode Software Application Server USA [45]
June 23, 2005 Meiosys Application Management USA, FRA [46]
July 25, 2005 PureEdge Solutions, Inc. Electronic Forms CAN [47]
July 27, 2005 Isogon Corporation Asset Management USA [48]
Aug 2, 2005 DWL Enterprise Information Integration USA, CAN [49]
Oct 14, 2005 DataPower Technology, Inc. Service Oriented Architecture (SOA) USA [50]
Nov 1, 2005 iPhrase Systems, Inc. Information management software USA [51]
Nov 10, 2005 Network Solutions Pvt Ltd IT Services IND
Nov 15, 2005 Collation, Inc. Network management USA [52]
Dec 20, 2005 Bowstreet, Inc. Portal-based tools USA [53]
Jan 27, 2006 ARGUS Semiconductor Software From INFICON Semiconductor Manufacturing software USA [54]
Jan 20, 2006 CIMS Lab, Inc. IT Financial Management USA [55]
Feb 8, 2006 Viacore, Inc. Supply chain optimization USA [56]
Feb 14, 2006 Micromuse, Inc. Network management USA $865,000,000 [57]
March 16, 2006 Language Analysis Systems Identity management USA [58]
May 2, 2006 BuildForge, Inc. Software Development USA [59]
May 5, 2006 Unicorn Solutions, Inc. Metadata management USA [60]

[61]

June 27, 2006 Rembo Technology Installation Software  SUI [62]
Aug 1, 2006 Webify Solutions, Inc Service Oriented Architecture software USA [63]
Sep 6, 2006 Global Value Solutions IT Services BRA [64]
Oct 4, 2006 DORANA product line from Ubiquity Pty Limited Asset Management AUS [65]
Oct 5, 2006 MRO Software Asset Management USA $740,000,000 [66]
Oct 12, 2006 FileNet Corporation Content management software USA $1,600,000,000 [67]
Oct 20, 2006 Internet Security Systems (ISS) Information security USA $1,300,000,000 [68]
Oct 20, 2006 Palisades Technology Partners Management consulting USA [69]
Jan 22, 2007 Consul Risk Management, Inc. Information security NED [70]
Feb 13, 2007 Vallent Corporation Telecommunications Management USA [71]
March 1, 2007 Softek Storage Solutions Corporation Data Mobility USA [72]
March 18, 2007 BlackDot Networks, Inc. Enterprise Data Consulting USA
April 20, 2007 Unicible IT Services  SWI $460,000,000 [73]
July 20, 2007 Watchfire Corporation Security software testing USA [74]
Aug 21, 2007 WebDialogs Web conferencing and communications USA [75]
Aug 31, 2007 DataMirror Corporation Change Data Capture CAN $161,000,000 [76]
Sep 7, 2007 Qinnova, Inc. Internet Protocol Television (IPTV) CAN [77]
Sep 10, 2007 Princeton Softech, Inc. Business intelligence USA [78]
Oct 24, 2007 NovusCG Storage Consulting and Technology Services USA [79]
Jan 2, 2008 XIV Enterprise storage ISR Over $300M [80]
Jan 18, 2008 AptSoft Corporation Business intelligence USA [81]
Jan 29, 2008 Solid Information Technology Database software USA, FIN [82]
Jan 31, 2008 Cognos Business intelligence CAN $5,000,000,000 [83]
Jan 31, 2008 Arsenal Digital Solutions Data backup services USA [84]
Feb 15, 2008 Net Integration Technologies Inc. Business Server Software CAN [85]
March 11, 2008 Encentuate, Inc. Enterprise Single Sign-On USA [86]
April 3, 2008 Telelogic AB Enterprise software development SWE $845,000,000 [87]
April 18, 2008 Diligent Technologies Data De-duplication USA $200,000,000 [88]
April 21, 2008 FilesX Application Recovery Software USA, ISR [89]
April 29, 2008 InfoDyne Corporation Data Feed Connectors USA [90]
July 2, 2008 Platform Solutions Mainframe, System Z technologies USA [91]
July 28, 2008 ILOG Business Rules Management Systems FRA $340,000,000 [92]
Nov 18, 2008 Transitive Corporation Virtualization Software USA, UK [93]
Jan 15, 2009 Outblaze's E-Mail Service Assets Online messaging and collaboration HKG [94]
May 5, 2009 Exeros Assets Data Discovery Software USA [95]
July 28, 2009 SPSS Inc. Statistical analysis software USA $1,200,000,000 [96]
July 28, 2009 Ounce Labs Source code analysis USA [97]
September 22, 2009 RedPill Solutions Analytics and Optimisation SGP [98]
November 30, 2009 Guardium Database monitoring and protection USA, ISR [99]
December 16, 2009 Lombardi Business Process Management USA [100]
January 20, 2010 National Interest Security Company, LLC Public sector consulting USA [101]
February 3, 2010 Initiate Systems Data integrity software USA [102]
February 16, 2010 Intelliden Inc. Network Automation software USA [103]
March 1, 2010 Wilshire Credit Corporation Assets Mortgage Business Processing Services USA [104]
May 3, 2010 Cast Iron Systems Cloud Integration USA $190,000,000 [105] [106]
May 24, 2010 Sterling Commerce Business software integration USA $1,400,000,000 [107]
June 15, 2010 Coremetrics Web Analytics USA [108]
July 1, 2010 BigFix, Inc. Security and IT automation software USA [109]
July 29, 2010 Storwize Data Compression USA $140,000,000 [110]
August 10, 2010 Datacap Data capture and Content Management USA [111]
August 13, 2010 Unica Corporation Marketing planning software USA $480,000,000 [112]
September 15, 2010 OpenPages Integrated risk management solutions USA [113]
September 20, 2010 Netezza Data warehousing and analytics USA $1,700,000,000 [114]
September 27, 2010 BLADE Network Technologies Networking USA [115]
October 13, 2010 PSS Systems Legal risk management USA [116]
October 21, 2010 Clarity Systems Financial governance CAN $350,000,000 [117]
March 22, 2011 Tririga Inc. Facility and Real Estate Management USA [118]
August 31, 2011 i2 Limited Intelligence Analytics UK [119]
September 1, 2011 Algorithmics Inc.[120] Risk Management CAN $387,000,000 [121]
October 4, 2011 Q1 Labs[122] Security Intelligence USA [123]
October 12, 2011 Platform Computing Cluster and Grid Management Software CAN [124]
December 5, 2011 Cúram Software Smarter Cities IRL [125]
December 8, 2011 DemandTec Cloud-based Retail Analytics USA $440,000,000 [126]
December 15, 2011 Emptoris Supply Chain Analytics USA [127]
January 4, 2012 Green Hat (software company)[128] Cloud based software testing USA, UK [129]
January 31, 2012 Worklight Software Development Firm ISR $70,000,000 [130][131]
April 13, 2012 Varicent Compensation and Sales Performance Management Software Solutions CAN [132]
April 25, 2012 Vivisimo Enterprise Search Software USA [133]
May 2, 2012 Tealeaf Technology Customer Experience Analytics Software USA [134]
August 16, 2012 Texas Memory Systems Solid State Storage USA [135]
August 27, 2012 Kenexa Corporation Human Capital Solutions USA $1,400,000,000[136] [137]
September 24, 2012 Butterfly Software Ltd. Data Analysis and Migration Software UK [138]
December 19, 2012 StoredIQ Big Data Analysis USA [139]
February 1, 2013 Star Analytics Business Analytics USA [140][141]
April 22, 2013 UrbanCode Software delivery automation USA [142]
June 4, 2013 SoftLayer Technologies Cloud Computing Infrastructure USA $2,000,000,000[143] [144]
July 9, 2013 CSL International Cloud Computing ISR Not Disclosed [145]
August 15, 2013 Trusteer Cyber Security ISR $1,000,000,000[146] [147]
September 19, 2013 Daeja Image Systems Viewer for document management systems UK Not disclosed [148]
October 1, 2013 The Now Factory Mobile Networks Big Data Analytics IRL Not disclosed [149]
October 3, 2013 Xtify In-app mobile messaging and push notification tools USA Not disclosed [150]
November 13, 2013 Fiberlink Communications Mobile Device Management USA $330,000,000 [151]
December 19, 2013 Aspera, Inc. Data Transfer Technology USA Not disclosed [152]
February 24, 2014 Cloudant, Inc. Database-as-a-Service USA Not disclosed [153]
April 10, 2014 Silverpop Systems, Inc. Behavioral Marketing Automation USA Not disclosed [154]
May 19, 2014 Cognea Cognitive computing (conversational artificial intelligence platform) USA Not disclosed [155]
July 31, 2014 CrossIdeas Cloud Security (Identity and Access Governance) ITA Not disclosed [156]
August 11, 2014 Lighthouse Security Group Cloud Security USA Not disclosed [157]
March 4, 2015 AlchemyAPI Natural language processing, big data USA Not disclosed [158]
Mar 25, 2015 Lufthansa's IT Infrastructure Unit (LHSystems) IT Infrastructure servicing Lufthansa and its subsidiaries (Technik, Cargo, LSG Skychefs, etc.)
Although purchase price is difficult to find, IBM positioned this acquisition as "winning 'an outsourcing contract' worth US$ 1.25B"[159]
USA DE [160]
March 27, 2015 Blekko Web Search Engine, Cognitive Computing USA Not disclosed [161]
April 13, 2015 Explorys Healthcare analytics USA Not disclosed [162]
April 13, 2015 Phytel Health management software USA Not disclosed [163]
June 3, 2015 Bluebox Private Cloud as a Service USA Not disclosed [164]
July 23, 2015 Compose Inc. Database as a Service USA Not disclosed [165]
August 6, 2015 Merge Healthcare Inc. Healthcare imaging software USA $1,000,000,000 [166]
September 10, 2015 StrongLoop Inc. Mobile API capabilities USA Not disclosed [167]
September 28, 2015 Meteorix LLC Consulting services for Workday applications USA Not disclosed [168]
October 28, 2015 The Weather Company digital assets Weather data sources and analytics, related online and mobile products USA Not disclosed [169][170][171]
November 3, 2015 Gravitant, Inc Cloud brokerage software and cloud management USA Not disclosed [172]
November 6, 2015 Cleversafe Object-based storage software USA $1,309,000,000[173] [174]
December 8, 2015 Clearleap Cloud-based video management USA Not disclosed [175]
January 15, 2016 Iris Analytics Real time transaction fraud detection GER Not disclosed [176]
January 21, 2016 Ustream Streaming video USA Not disclosed [177]
January 28, 2016 Resource/Ammirati Digital marketing and creative agency USA Not disclosed [178]
February 2, 2016 Aperto AG Digital marketing and creative agency GER Not disclosed [179]
February 3, 2016 ecx.io AG Digital marketing and creative agency GER Not disclosed [180]
February 18, 2016 Truven Health Analytics Provider of cloud-based healthcare data, analytics and insights USA $2,600,000,000 [181]
February 29, 2016 Resilient Systems Cyber security, incident response platform USA Not disclosed [182]
March 18, 2016 Optevia Specialist provider of Microsoft Dynamics CRM based solutions and associated services to the public sector UK Not disclosed [183]
March 31, 2016 Blue Wolf Group LLC Salesforce systems integrator and professional services USA $200,000,000 [184]
June 1, 2016 EZSource Application discovery and dashboard visualization ISR Not disclosed [185]
September 29, 2016 Promontory Financial Group Risk management and regulatory compliance USA Not disclosed [186]
October 27, 2016 Sanovi Technologies Hybrid cloud recovery IND Not disclosed [187]
February 3, 2017 Agile 3 Solutions Information security USA Not disclosed [188]
May 2, 2017 Verizon – Cloud services Cloud services USA Not disclosed [189]
May 31, 2017 XCC (division of TIMETOACT) Collaboration software GER Not disclosed [190]
September 24, 2017 Cloudigo Data Center Company Israel Not disclosed [191]
October 5, 2017 Vivant Digital Innovation Consultancy AUS Not disclosed [192]
May 3, 2018 Armanta, Inc. Aggregation/analytics software for financial services firms USA Not disclosed [193]
June 15, 2018 Oniqua Holdings Pty Ltd. Intelligent maintenance repair and operations (MRO) solutions USA AUS Not disclosed [194]
July 9, 2019 Red Hat Provider of open source software and solutions USA $34,000,000,000 [195][196]

Acquisitions since 2020

[edit]

Number of acquisitions per year according to table below:

  • In 2020 IBM acquired 6 companies
  • In 2021 IBM acquired 7 companies
  • In 2022 IBM acquired 3 companies
  • In 2023 IBM acquired 3 companies
  • In 2024 IBM acquired 2 companies
  • In 2025 IBM acquired 2 companies
June 15, 2020 Spanugo US-based provider of cloud cybersecurity posture management solutions USA Not disclosed [197]
July 8, 2020 WDG IBM to Acquire WDG Automation to Advance AI-Infused Automation Capabilities for Enterprises BRA Not disclosed [198]
November 16, 2020 TruQua Enterprises Acquisition enhances IBM's expertise in migrating financial platforms to SAP USA Not disclosed [199]
November 18, 2020 Instana Acquisition continues to advance IBM's Hybrid Cloud and AIOps strategy with Application Performance Management and enterprise Observability capabilities USA Not disclosed [200]
December 15, 2020 Expertus Technologies Inc. Digital payments provider CAN Not disclosed [201]
December 21, 2020 Nordcloud Acquisition enhances IBM's Hybrid Cloud Consulting capabilities FIN Not disclosed [202]
January 11, 2021 7Summits Acquisition drives digital transformations for Salesforce clients USA Not disclosed [203]
Jan 14, 2021 Taos Acquisition to expand hybrid cloud consulting services USA Not disclosed [204]
April 15, 2021 myInvenio Acquisition to help Organizations Use AI-powered Automation to Better Streamline Business Processes ITA Not disclosed [205]
May 18, 2021 Waeg Acquisition to expand Salesforce consulting services Belgium Not disclosed [206]
June 17, 2021 Turbonomic Acquisition to expand AIOps (the use of AI to automate IT Operations) to application and infrastructure observability. This also included SevOne, a network performance management solution as part of the acquisition. USA Estimated $1,500,000,000 - $2,000,000,000 [207] [208][209]
July 8, 2021 BoxBoat Technologies DevOps consultancy and enterprise Kubernetes certified service provider USA Not disclosed [210]
July 15, 2021 Bluetab Solutions Group, S.L. Hybrid cloud data and analytics consulting SPA Not disclosed [211]
January 11, 2022 Envizi Sustainability data management and reporting platform Australia Not disclosed [212]
Feb 15, 2022 Neudesic Cloud services consultancy specializing primarily in the Microsoft Azure platform, along with bringing skills in multicloud USA Not disclosed [213]
September 22, 2022 Dialexa Digital product engineering services USA Not disclosed [214]
December 2022 Octo USA Not disclosed
February 8, 2023 StepZen GraphQL-as-a-Service USA Not disclosed [215]
May 16, 2023 Polar Security Cyber Security, Data Security Posture Management (DSPM) ISR $60,000,000 [216]
June 26, 2023 Apptio Software-as-a-service USA $4,600,000,000 [217]
December 18, 2023 Streamsets Data integration GER [218]
March 20, 2024 Pliant Network and IT infrastructure automation USA Not disclosed [219]
April 24, 2024 HashiCorp Infrastructure and security automation USA $6,400,000,000 [220]
February 25, 2025 DataStax AI applications USA Not disclosed [221]
June 2, 2025 SeekAI AI applications USA Not disclosed [222]

Spin-offs

[edit]
  • 1934 – Dayton Scale Division is sold to the Hobart Manufacturing Company.
  • 1942 – Ticketograph Division is sold to the National Postal Meter Company.
  • 1958 – Time Equipment Division is sold to the Simplex Time Recorder Company.
  • 1974 – Service Bureau Corporation sold to Control Data Corporation
  • 1984 – Prodigy, formerly a joint venture with Sears, Roebuck and Company.
  • 1985 – Satellite Business Systems sold to MCI Communications
  • 1988 – Copier/Duplicator business, including service and support contracts, sold to Eastman Kodak.[223][224]
  • 1990 – ARDIS mobile packet network, a joint venture with Motorola. Motorola buys IBM's 50% interest in 1994. Now Motient.
  • 1991 – Lexmark (keyboards, typewriters, and printers). IBM retained a 10% interest. Lexmark has sold its keyboard and typewriter businesses.
  • 1991 – Kaleida, a joint Multimedia software venture with Apple Computer.
  • 1992 – Taligent, a joint software venture with Apple Computer.
  • 1992 – IBM's personal computer manufacturing divisions, combined and spun off to form the autonomous subsidiary IBM Personal Computer Company (later IBM Personal Systems Group).
  • 1992 – IBM Commercial Multimedia Technologies Group, spun off to form private company Fairway Technologies.
  • 1992 – IBM sells its remaining 50 percent stake in the Rolm Company to Siemens A.G. of Germany.[225]
  • 1994 – Xyratex enterprise data storage subsystems and network technology, formed in a management buy-out from IBM.
  • 1995 – Advantis (Advanced Value-Added Networking Technology of IBM & Sears), a voice and data network company. Joint Venture with IBM holding 70%, Sears holding 30%. IBM buys Sears' 30% interest in 1997. AT&T acquires the infrastructure portion of Advantis in 1999, becoming the AT&T Global Network. IBM retained business and strategic outsourcing portions of the joint venture.
  • 1994 – Federal Systems Division sold to Loral becoming Loral Federal Systems. The Federal Systems Division performed work for NASA. Loral was later acquired by Lockheed Martin.
  • 1996 – Celestica, Electronic Manufacturing Services (EMS).
  • 1998 – IBM Global Network sold to AT&T to form AT&T Business Internet.
  • 1999 – Dominion Semiconductor (DSC) IBM sells its 50% share to JV partner Toshiba. DSC becomes a wholly owned subsidiary of Toshiba.
  • 2001 – Information Services Extended department, developer of specialized databases and software for telephone directory assistance, is spun off to form privately held company ISx, Inc (later sold to Local Matters).
  • December 31, 2002 – IBM sells its HDD business to Hitachi Global Storage Technologies for approximately $2 billion. Hitachi Global Storage Technologies now provides many of the hardware storage devices formerly provided by IBM, including IBM hard drives and the Microdrive. IBM continues to develop storage systems, including tape backup, storage software and enterprise storage.
  • December 2004 – Acquisition of the IBM PC business by Lenovo: Lenovo acquires 90% interest in IBM Personal Systems Group, 10,000 employees and $9 billion in revenue.
  • April 3, 2006 – Web analytics provider Coremetrics acquires SurfAid Analytics, a standalone division of IBM Global Services. The deal was said to be in the "eight-figure" range, making it worth at least $10 million. (Note: Since then Coremetrics has in turn been acquired by IBM)
  • January 25, 2007 – Three-year joint venture with IBM Printing Systems division and Ricoh to form new Ricoh-owned subsidiary, InfoPrint Solutions Company, for $725 million.
  • September 2009 – IBM launches online business IT video advice service in association with GuruOnline.
  • September 2009 – IBM sells its U2 multivalue database and application development products (created by VMark, UniData, System Builder and Prime Computer, obtained via the Informix acquisition) to Rocket Software
  • April 2012 – IBM sells its Retail Store Solutions division (Point-of-Sales) to Toshiba TEC[226]
  • January 2014 – IBM sells its IBM System x business to Lenovo for $2.3 billion.[227]
  • October 2014 – IBM sells its Microelectronics (semiconductor) branch to GlobalFoundries. IBM will pay GlobalFoundries $1.5 billion over 3 years to take over the business.[228]
  • December 2014 – UNICOM Global acquires IBM Rational Focal Point and IBM Rational Purify Plus.[229]
  • January 2015 – IBM sells Algorithmics Collateral to SmartStream Technologies [230]
  • December 2015 – UNICOM Global acquires IBM Rational System Architect [231]
  • December 2018 – HCL Technologies to acquire Select IBM Software Products for $1.8B.[232]
  • July 2019 – IBM Watson Marketing business spins off into standalone company Acoustic, after acquisition by Centerbridge Partners[233][234]
  • October 8, 2020 – IBM announced it was spinning off the Managed Infrastructure Services unit of its Global Technology Services division into a new public company, an action expected to be completed by the end of 2021.[235]
  • November 3, 2021 Kyndryl. IBM distributed 80.1% of its Kyndryl shares to IBM shareholders.
  • January 21, 2022 – IBM announced that it would sell Watson Health to the private equity firm Francisco Partners.[236]
  • August 22, 2023 — IBM announced that the private equity firm Francisco Partners would acquire The Weather Company assets.[237]

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
International Business Machines Corporation (), founded in 1911 as the , has pursued an aggressive strategy to evolve its business from early hardware to modern enterprise solutions in software, consulting, , and . As of November 2025, IBM has completed 196 acquisitions across 75 sectors, including prominent areas like IT services (32 deals), IT operations (23), and cybersecurity (19), with activity peaking in years such as 2010 and 2015 (16 each). These acquisitions have marked key phases in IBM's history, beginning with foundational deals in the mid-20th century but accelerating significantly from the onward to address shifts in technology markets. Notable early examples include the 1995 acquisition of Lotus Development for approximately $3.5 billion, which integrated like Lotus Notes and 1-2-3 to bolster IBM's software portfolio, and the 2002 purchase of PricewaterhouseCoopers Consulting for $3.5 billion, which expanded IBM's global services division by adding 30,000 employees and expertise in . In the , IBM's strategy has emphasized hybrid cloud and data-driven innovation, highlighted by the $34 billion acquisition of in 2019—the largest software deal in history at the time—which enabled to lead in open hybrid cloud platforms while maintaining Red Hat's independence. More recently, the February 2025 completion of the $6.4 billion acquisition has enhanced IBM's capabilities in multi-cloud infrastructure automation and security, aligning with its focus on AI-enabled enterprise solutions; in October 2025, IBM acquired Txture to further support hybrid cloud migration and modernization. Overall, since 2001, IBM has executed over 160 acquisitions to integrate specialized technologies and talent, driving its transition to a services-oriented powerhouse.

Pre-IBM era (1889–1911)

Precursors and company formations (1889–1910)

The origins of what would become trace back to several independent companies specializing in time-keeping, weighing, and data-processing technologies during the late 19th and early 20th centuries. These entities emerged amid the Industrial Revolution's demand for efficient labor management and record-keeping in factories and businesses. In 1889, Bundy incorporated the in , as the first dedicated time-recording firm, producing mechanical time clocks to track factory workers' hours and improve payroll accuracy. The company focused on dial-based recorders that stamped employee arrival and departure times onto cards, addressing inefficiencies in manual logging. In 1899, Bundy acquired the Standard Time Stamp Company, integrating its stamping technology to enhance product versatility for industrial applications. The Computing Scale Company was formed on March 20, 1891, in , by Edward A. Canby and Orange J. Ozias, with an initial capital of $160,000, specializing in mechanical weighing scales for commercial use. These devices combined weighing with computational features to calculate costs and quantities, serving retailers and manufacturers. In 1901, the company reorganized as the Computing Scale Company of America, incorporating the , which had been established in 1896 to produce automated scales for industrial weighing. Time-recording innovations continued with the Dey Patents Company, incorporated in 1893 in , which soon renamed itself the Dey Time Register Company to focus on dial time registers patented by Alexander Dey. These devices used rotating dials to record worker hours without cards, emphasizing durability for factory environments. Meanwhile, in 1894, the Willard & Frick Manufacturing Company was established in , producing time recorders that integrated clock mechanisms with printing features for precise attendance tracking. A pivotal advancement in data tabulation occurred in 1896 when founded the Tabulating Machine Company in , leveraging his punched-card system originally developed for the 1890 U.S. Census. The company manufactured electric tabulators, sorters, and punches that processed statistical data at high speeds, marking the first commercial application of electromechanical and serving and railroad clients. In 1905, the company reincorporated to strengthen its structure amid growing competition from the U.S. Census Bureau, which began developing rival machines as Hollerith's patents neared expiration. Consolidation began in 1900 with the incorporation of the International Time Recording Company (ITR) by George W. Fairchild in , initially as a sales agency for Bundy Manufacturing and Willard & Frick products. That year, ITR acquired the Time-Register Company, known for its cardless time systems, and the Dayton Moneyweight Scale Company, which added weighing capabilities to time-recording operations. By 1902, ITR had fully consolidated Bundy Manufacturing, Willard & Frick, and Time-Register into a unified manufacturing entity. Further expansion included the 1907 acquisition of Dey Time Register Company, incorporating its patented dial technology, and the 1908 purchase of Syracuse Time Recorder Company, enhancing ITR's portfolio in mechanical recorders. These companies specialized in complementary technologies: time recorders from Bundy, , Willard & Frick, and ITR addressed labor accountability; scales from Computing Scale and Automatic provided measurement and computation; and Hollerith's tabulators enabled efficient . This fragmentation in the burgeoning office machinery sector set the stage for broader industry consolidation to meet rising demands for integrated business solutions.

Computing-Tabulating-Recording Company establishment (1911)

In 1911, financier orchestrated the merger of three established companies to form the (CTR), serving as a that consolidated their operations under a unified structure. The amalgamated entities included the Tabulating Machine Company (founded by ), which specialized in punched-card tabulating systems; the International Time Recording Company, focused on time-keeping devices; and the Computing Scale Company of America, producer of commercial scales. Hollerith, the founder of the Tabulating Machine Company, sold his firm to the new and initially remained involved as a technical consultant, though his active role diminished over time. CTR's initial leadership featured Flint as the key organizer, with George W. Fairchild appointed as chairman and Frank H. Kondolf as president. The company's product lines encompassed time clocks for , computing scales for retail and industrial weighing, and tabulating machines for , reflecting the diverse mechanical computing needs of early 20th-century businesses. Incorporated on June 16, 1911, in , CTR began operations with approximately 1,300 employees across dispersed facilities, including headquarters in Endicott, a plant in , and additional sites in , , and , . Its initial capitalization stood at $19 million, derived from stock valuations and assets of the merged entities, positioning it as a significant player in office machinery despite early challenges in integration and debt management. Early operations emphasized leveraging the complementary technologies of to serve growing demands in tabulation, time tracking, and , though the conglomerate structure led to initial inefficiencies in coordination.

Early IBM period acquisitions (1912–1949)

1912–1929

In the formative years following its establishment as the (CTR) in 1911, the firm pursued strategic acquisitions to broaden its portfolio in scales, time-recording devices, and accounting machinery, laying the groundwork for mechanical innovations. These moves, primarily between 1917 and 1921, enhanced CTR's capabilities in automated tabulation and recording, aligning with growing demand for efficient operations in the early 20th century. A pivotal acquisition occurred in 1917 when CTR took over the American Automatic Scale Company of , a manufacturer of computing scales, and renamed it the International Scale Company. This deal integrated scale production into CTR's operations, diversifying beyond tabulating machines and supporting the company's emphasis on precise tools for commercial use. That same year, CTR consolidated its Canadian operations by merging three existing subsidiaries—The Canadian Tabulating Machine Co., the Computing Scale Co. of Canada, Ltd., and the International Time Recording Co. of Canada—into a single entity named Co., Ltd. This reorganization marked CTR's first formal international expansion and introduced the "International Business Machines" branding in , facilitating localized sales of tabulating and recording equipment. In 1921, CTR acquired the assets and patents of the Peirce Accounting Machine Company through an asset purchase, incorporating alphabetic accounting machines that complemented its punched-card tabulation systems. Concurrently, the company purchased the Ticketograph Company of , whose specialized printing and recording devices for tickets and forms were integrated as a new division, further strengthening CTR's mechanical data processing lineup. In 1923, CTR acquired a majority stake in Dehomag (Deutsche Hollerith-Maschinen Gesellschaft mbH), establishing a key subsidiary in for manufacturing and distributing punched-card tabulating equipment, which supported IBM's expansion into the European market. These acquisitions culminated in a corporate : the Canadian subsidiary had adopted the International Business Machines name in 1917, and on February 14, 1924, CTR officially renamed itself (IBM) to reflect its global ambitions. The change was announced publicly that day. Through these early deals, IBM expanded into markets like , , and by 1919, emphasizing scalable mechanical solutions for data handling that boosted efficiency in industries reliant on record-keeping. Sales of tabulating machines doubled from $4 million in 1914 to $8 million by 1917, underscoring the impact of these expansions on the company's growth in automated business tools.

1930–1949

During the 1930s, IBM navigated the by acquiring companies that bolstered its mechanical computing and office equipment divisions, focusing on scales and typewriters to maintain revenue streams amid economic contraction. In 1930, IBM acquired the Automatic Accounting Scale Company, a manufacturer of automatic counting scales, which expanded its portfolio in precision measurement tools for business applications. This move aligned with IBM's strategy to integrate complementary technologies from its predecessor entities, such as the Computing Scale Company. By 1932, IBM further consolidated its scale operations through the purchase of the National Counting Scale Company, a prominent producer of counting scales, for an undisclosed amount, enhancing its capabilities in retail and industrial weighing equipment. In 1933, IBM integrated its scale and tabulating divisions into a unified structure, eliminating the holding company framework inherited from the 1911 Computing-Tabulating-Recording Company merger and streamlining operations under the brand to improve efficiency during fiscal challenges. That same year, IBM acquired Electromatic Typewriters, Inc., of , investing over $1 million to re-engineer its electric technology, which paved the way for the IBM Model C Electric Typewriter introduced in 1935—the first commercially successful electric typewriter. As approached, IBM shifted toward defense production; in 1941, it bought the Munitions Manufacturing Corporation to repurpose facilities for wartime manufacturing, including aircraft fire control systems and automatic carbines, supporting U.S. military needs without disrupting core output. These acquisitions during the and war years facilitated IBM's diversification from punch-card tabulation into broader office equipment like electric typewriters and into defense munitions, enabling the company to emerge as the world's largest office machine firm by 1945 while sustaining employment and innovation.
YearAcquired CompanyKey Details
1930Automatic Accounting Scale CompanyMaker of automatic counting scales; expanded precision measurement for business use.
1932National Counting Scale CompanyProducer of counting scales; strengthened retail and industrial weighing capabilities.
1933Electromatic Typewriters, Inc.Rochester-based firm; led to $1M+ investment and 1935 IBM Model C Electric Typewriter launch.
1941Munitions Manufacturing CorporationEnabled WWII defense production, including fire control systems and carbines.

Mid-20th century acquisitions (1950–1989)

1950–1969

During the 1950s and 1960s, 's acquisition strategy remained selective, focusing on technologies and services that supported its transition from electromechanical to electronic computing systems, amid growing demand for peripherals and research capabilities. This era saw IBM invest in audio recording innovations and educational resources to enhance data input methods and workforce development, aligning with the company's broader pivot toward integrated computing architectures. These moves were pivotal as IBM prepared to launch its groundbreaking System/360 family, announced on April 7, 1964, which standardized computing across scales and emphasized compatibility for business and scientific applications. In 1959, IBM acquired the patents and assets of Peirce Wire Recorder Corporation, a Chicago-based firm specializing in magnetic wire and belt recording technology for dictation and audio applications. Founded in 1920 as Radiotechnic Laboratories, Peirce had developed transistorized magnetic recorders during the late 1950s, which IBM integrated into its own line of office dictation machines to expand peripheral offerings. This acquisition bolstered IBM's data processing ecosystem by providing reliable, compact recording solutions that complemented emerging electronic storage needs, particularly for voice-to-data transcription in administrative environments. By 1964, further diversified through the purchase of (SRA), a Chicago publisher of educational materials, aptitude tests, and guidance programs primarily for primary and secondary schools. SRA's portfolio, which included self-paced learning kits like the SRA Reading Laboratory series, allowed to enter the training and assessment market, supporting R&D expansion by fostering skills in data handling and logical thinking essential for the workforce. Acquired for an undisclosed sum, SRA's resources proved strategically important for 's System/360 rollout, enabling educational programs that prepared users for electronic and programming tasks. These acquisitions underscored IBM's emphasis on peripheral technologies and during a transformative period, enhancing data capture efficiency and research outreach without diluting focus on core hardware innovations. By integrating Peirce's recording expertise and SRA's testing methodologies, IBM strengthened its position in end-to-end data solutions, contributing to the of electronic in the mid-20th century.

1970–1989

During the 1970s and 1980s, IBM pursued diversification into to complement its dominant mainframe business amid rising competition from minicomputers and early personal computing. This era marked IBM's cautious expansion into satellite communications and telephony hardware, driven by the need to integrate with voice networks for enterprise customers. However, these initiatives unfolded against a backdrop of intense antitrust oversight, including a long-running U.S. Department of Justice case filed in that scrutinized IBM's market power and was not dismissed until . In 1974, partnered with the (COMSAT) to acquire the remaining interests in CML Satellite Corporation from Lockheed Aircraft and for $5 million, renaming it Satellite Business Systems (SBS). SBS focused on providing dedicated satellite-based private networks for corporate data and voice transmission, targeting large businesses seeking alternatives to terrestrial lines. To mitigate monopoly concerns, the mandated that SBS operate as an independent entity, barring it from bundling or marketing IBM computers via its satellite services. By the mid-1980s, amid shifting priorities and regulatory pressures, opted to divest SBS. In 1985, it reached an agreement with , under which MCI would acquire the bulk of SBS's assets and operations in exchange for receiving a significant equity stake in MCI—up to 16% initially, with options for more. The deal closed in March 1986, with MCI purchasing SBS outright for $375 million, marking 's exit from direct satellite operations while gaining a foothold in long-distance through its MCI investment. As part of the transaction, retained and acquired RealCom Communications Corporation, a SBS subsidiary specializing in and tenant services, to support its enterprise networking portfolio. IBM's telecommunications push intensified in 1984 with the acquisition of ROLM Corporation, a Santa Clara, California-based producer of computer-telephone integrated systems, for $1.25 billion in convertible debentures. ROLM's expertise in private branch exchanges (PBXs) and digital switching equipment enabled IBM to offer integrated voice-data solutions for offices, aligning with the growing demand for networked computing environments. The deal, which built on IBM's prior 23% stake in ROLM, underwent antitrust review by the Justice Department, which raised concerns about reduced competition in bundled computing and telecom markets but permitted the acquisition after modifications. Post-acquisition, ROLM was folded into 's Communication Products Division, where its technologies enhanced offerings like the 8775 telecommunications controller and supported the convergence of with local area networks. This integration facilitated 's broader strategy to embed telecom capabilities into its systems, though ongoing antitrust vigilance limited aggressive bundling. By the late 1980s, amid challenges in merging cultures and technologies, partially divested ROLM through a 1989 joint venture with AG, selling 50% for $500 million while retaining marketing rights in . These moves exemplified IBM's efforts to navigate the mainframe era's decline by entering telecom, yet they were tempered by regulatory hurdles that shaped a more modular approach to product development and partnerships.

Late 20th century acquisitions (1990–1999)

1990–1994

In the early 1990s, IBM grappled with existential financial challenges, including cumulative losses exceeding $15 billion from 1991 to 1993, which necessitated a profound strategic overhaul. Upon becoming CEO in April 1993, Lou Gerstner redirected the company from its traditional hardware dominance toward high-margin IT services and software, emphasizing integrated solutions that met evolving customer demands in a shifting computing landscape. This pivot was crucial for IBM's survival, as services revenue began to outpace hardware sales, laying the foundation for sustained recovery. A pivotal move in this era was France's acquisition of CGI Informatique in 1993, a prominent Canadian-origin IT consulting firm with strong European operations focused on software services and systems integration. Valued at approximately $450 million through a public of convertible bonds, the deal was approved by the on May 19, 1993, granting control after securing a 25.37% stake from key shareholders. CGI's expertise in consultancy, operational support, and custom applications development bolstered 's nascent services division, particularly in where the combined entity held under 5% market share but gained critical local footholds. This acquisition directly supported Gerstner's services growth agenda by enabling to offer end-to-end solutions for clients migrating from mainframe-centric models to distributed environments. Complementing this, IBM acquired Transarc Corporation in 1994, a Pittsburgh-based software firm specializing in distributed systems technology. Announced on August 17, 1994, for an undisclosed sum, the purchase integrated Transarc's (AFS) and Distributed File Service (DFS) into IBM's AIX Unix operating system, providing scalable across networked servers. Transarc's innovations in fault-tolerant, location-transparent file management addressed key bottlenecks in enterprise data access, enhancing AIX's suitability for client-server architectures where multiple users required seamless resource distribution. By embedding these capabilities, IBM advanced its software portfolio, aligning with Gerstner's vision of open, interoperable technologies that facilitated services-led implementations for corporate networks. Together, the CGI and deals exemplified IBM's early 1990s strategy to build services infrastructure amid its turnaround, equipping the company to guide clients through the client-server paradigm shift from siloed mainframes to interconnected systems. These foundational acquisitions contributed to services becoming IBM's largest revenue driver by the mid-1990s, marking a decisive step away from prior hardware and telecom emphases.

1995–1999

In the mid-to-late 1990s, IBM shifted focus toward bolstering its software portfolio amid the rapid growth of the internet and enterprise computing, acquiring companies that enhanced middleware, collaboration tools, and systems management capabilities to support e-business initiatives. This period marked a strategic expansion in software integrations, following foundational services developments from the early 1990s, as IBM aimed to provide comprehensive solutions for networked enterprises. Key acquisitions emphasized groupware, workflow automation, and emerging web technologies, positioning IBM as a leader in enterprise software during the dot-com boom. One of the landmark deals was IBM's acquisition of Lotus Development Corporation in July 1995 for $3.52 billion, which brought renowned products like Lotus Notes—a collaborative messaging and database platform—and Domino server software into IBM's ecosystem, significantly strengthening its position in enterprise collaboration tools. In 1996, IBM acquired Tivoli Systems for $743 million, integrating advanced systems and software that enabled scalable enterprise resource management and became a of IBM's IT operations offerings. That same year, IBM purchased Data Sciences Ltd., a UK-based financial software provider, for £95 million (approximately $150 million), adding specialized banking and applications to its financial services portfolio. Also in 1996, IBM acquired Object Technology International (OTI) to gain expertise in tools, including Smalltalk and early development environments, which later influenced IBM's IDE foundation. The acquisition momentum continued in 1997 with Software Artistry for $200 million, incorporating configuration and customization software that automated product sales processes for enterprise clients. also acquired Unison Software for about $170 million that year, adding job scheduling and workflow automation tools to streamline business operations. In the hardware domain, formed a with in 1996 called Dominion Semiconductor LLC, a $1.2 billion DRAM fabrication facility in , aimed at producing memory chips for computing and consumer electronics amid the boom. By 1998, IBM targeted wireless and real-time communication technologies, acquiring CommQuest Technologies for $180 million to integrate semiconductor designs for mobile communications, accelerating development of low-cost wireless products. Through its Lotus subsidiary, IBM acquired DataBeam Corporation and Ubique Ltd. for undisclosed amounts, gaining web-based collaboration platforms and technology—Sametime's precursor—that enhanced real-time enterprise interactions over the . These moves collectively fortified IBM's stack, enabling seamless integration of protocols with legacy systems and driving adoption of e-business solutions in the late .
YearAcquired EntityDeal ValueKey Assets/Impact
1995Lotus Development Corporation$3.52 billionLotus Notes and Domino for enterprise collaboration
1996Tivoli Systems$743 millionSystems management software for IT operations
1996Data Sciences Ltd.£95 millionFinancial software for banking and insurance
1996Object Technology InternationalUndisclosedObject-oriented tools (Smalltalk, Java IDEs)
1997Software Artistry$200 millionConfiguration and sales automation software
1997Unison Software$170 millionWorkflow and job scheduling tools
1996Dominion Semiconductor (JV with Toshiba)$1.2 billion investmentDRAM chip manufacturing facility
1998CommQuest Technologies$180 millionWireless semiconductor designs
1998DataBeam CorporationUndisclosedWeb collaboration platforms
1998Ubique Ltd.UndisclosedInstant messaging technology (Sametime precursor)

21st century acquisitions (2000–2025)

2000–2009

During the 2000s, accelerated its transformation from a hardware-centric to a services and software powerhouse, particularly in the wake of the dot-com bust, by acquiring firms that enhanced its capabilities in consulting, , integration, and emerging . This period marked a strategic pivot toward higher-margin businesses, with services growing significantly through key deals that expanded Global Services and bolstered its software portfolio. The following table summarizes major acquisitions by IBM from 2000 to 2009, focusing on those that supported its shift to e-business consulting, database and integration technologies, and business intelligence tools.
YearAcquired CompanyDeal ValueDescription
2001Informix Corporation$1 billionAcquisition of Informix's database software operations to strengthen IBM's distributed relational database offerings, including Informix Dynamic Server, integrating it into IBM's DB2 family for enhanced data management capabilities.
2001Mainspring$80 millionPurchase of the e-business strategy and consulting firm to bolster IBM's advisory services for digital transformation and online business models.
2002CrossWorlds Software$129 millionAcquisition of middleware technology for application and data integration, enhancing IBM's WebSphere portfolio for enterprise connectivity.
2002PwC Consulting$3.5 billionMajor deal to acquire PricewaterhouseCoopers' global consulting and technology services unit, adding 30,000 employees and forming the foundation of IBM Global Services, which accelerated IBM's services-led growth.
2003Rational Software Corporation$2.1 billionAcquisition of software development tools and methodologies provider, integrating Rational Unified Process and tools like ClearCase into IBM's Rational brand to improve software lifecycle management.
2004Daksh e-Services$170 millionPurchase of the India-based business process outsourcing firm to expand IBM's global BPO capabilities and low-cost delivery model in emerging markets.
2005Ascential Software$1.1 billionAcquisition of data integration and quality tools, including Informatica-like ETL capabilities, to support IBM's data warehousing and analytics initiatives.
2006Micromuse$865 millionDeal for network management and service assurance software, enhancing IBM's Tivoli portfolio for IT operations management.
2006FileNet$1.6 billionAcquisition of enterprise content management solutions to strengthen IBM's offerings in document management and compliance workflows.
2006Internet Security Systems (ISS)$1.3 billionPurchase of cybersecurity firm providing intrusion detection and vulnerability management, integrating into IBM's security software suite.
2007DataMirror$161 millionAcquisition of real-time data replication and integration technology to improve IBM's data synchronization for hybrid environments.
2008Cognos$5 billionLargest software acquisition of the decade, adding business intelligence and performance management tools to IBM's Information Management division, enabling advanced reporting and analytics.
2008Telelogic$845 millionDeal for modeling and testing tools, including UML-based systems engineering software, to enhance IBM Rational's development lifecycle offerings.
2008Diligent Technologies$200M (estimated)Acquisition of virtual tape library storage solutions to bolster IBM's data protection and storage management capabilities.
2008ILOG$340 millionPurchase of optimization and decision management software, including CPLEX solver, to advance IBM's supply chain and analytics tools.
2009SPSS$1.2 billionAcquisition of statistical analysis and predictive analytics software, integrating into IBM's SPSS brand to fuel growth in data mining and advanced analytics.
These acquisitions collectively totaled over $18 billion, reflecting IBM's aggressive investment in software (more than 100 deals since 2000) and services, which by decade's end accounted for over 80% of revenue, up from 50% in 2000. The focus on integration , , and positioned to capitalize on post-bust enterprise demands for efficient IT infrastructures and data-driven decision-making.

2010–2019

During the 2010s, IBM accelerated its acquisitions to bolster capabilities in cloud computing, advanced analytics, and industry-specific solutions, particularly in healthcare and finance, as part of a strategic pivot toward hybrid cloud environments and cognitive computing via its Watson platform. This period marked a shift from earlier business intelligence foundations, such as those from the 2000s Cognos acquisition, toward scalable data processing and security to support enterprise AI adoption. Key deals emphasized integrating specialized technologies to enhance IBM's Smarter Planet and Smarter Commerce initiatives, enabling clients to manage vast datasets for real-time decision-making. IBM's acquisitions in this decade included a mix of large-scale infrastructure buys and targeted software integrations, with total spending exceeding $45 billion on major transactions. The following table summarizes prominent examples:
YearAcquired CompanyDeal ValueFocus Area
2010Netezza$1.7 billionData warehousing and analytics appliances for high-performance querying of large datasets.
2011DemandTec$440 millionCloud-based pricing and merchandising analytics for retail optimization.
2011Algorithmics$387 millionRisk analytics software for financial services, enhancing compliance and market risk modeling.
2012Kenexa$1.3 billionTalent management and HR software, including recruitment and employee engagement tools.
2013SoftLayer Technologies$2 billionCloud infrastructure platform providing infrastructure-as-a-service for hybrid deployments.
2013TrusteerApproximately $1 billionCybersecurity solutions focused on endpoint protection and fraud prevention for financial institutions.
2015Merge Healthcare$1 billionMedical imaging software for handling and analyzing clinical images in healthcare workflows.
2015Cleversafe$1.3 billionObject storage technology using erasure coding for scalable, secure data management in cloud environments.
2016Truven Health Analytics$2.6 billionHealthcare data analytics platform providing clinical and market insights for value-based care.
2016The Weather Company (digital assets)Approximately $2 billionWeather data and forecasting services to integrate with IoT and Watson for industry applications like supply chain and energy.
2019Red Hat$34 billionOpen-source software leader in cloud-native technologies, enabling hybrid cloud platforms with Kubernetes and OpenShift.
Smaller acquisitions between 2014 and 2018, such as Promontory Financial Group in 2016 for consulting, further supported Watson's application in and AI-driven advisory services. These moves collectively advanced IBM's hybrid cloud strategy, allowing seamless integration of on-premises and public cloud resources while embedding AI for . By the end of the decade, the deal stood as IBM's largest acquisition ever, fundamentally reshaping its cloud offerings to compete in open-source ecosystems and accelerating enterprise adoption of containerized applications.

2020–2025

During the period from 2020 to 2025, IBM pursued an aggressive acquisition strategy centered on enhancing its hybrid cloud, AI, and data management capabilities, particularly following the 2021 spin-off of its infrastructure services business as Kyndryl. This approach enabled IBM to integrate advanced technologies for observability, automation, sustainability, and enterprise AI, supporting clients' digital transformations amid growing demands for secure, scalable cloud environments. Approximately 25 deals were completed, with a focus on bolstering IBM Consulting's expertise and expanding the watsonx AI portfolio to address unstructured data challenges and generative AI needs. In 2020, IBM targeted cloud services and DevOps enhancements to strengthen its hybrid cloud foundation. The acquisition of Spanugo in June provided cloud cybersecurity posture management solutions, enabling compliance-ready public cloud migrations for financial services firms. WDG Automation, acquired in July, added AI-infused robotic process automation (RPA) capabilities to automate enterprise workflows. TruQua Enterprises, purchased in November, brought specialized SAP consulting for financial transformations. Instana's acquisition later that month introduced automated application performance monitoring and observability, integrating AI to manage hybrid cloud complexity (undisclosed value). Expertus Technologies, acquired in December, expanded digital payments solutions on hybrid cloud platforms. Nordcloud, also in December, enhanced European cloud consulting for implementation and managed services.
YearAcquired CompanyFocus AreaValueSource
2020SpanugoCloud cybersecurityUndisclosedIBM Newsroom
2020WDG AutomationAI-powered RPA/UndisclosedIBM Newsroom
2020TruQua Enterprises consultingUndisclosedIBM Newsroom
2020/AIOpsUndisclosedIBM Newsroom
2020Expertus TechnologiesDigital paymentsUndisclosedIBM Newsroom
2020NordcloudCloud consultingUndisclosedIBM Newsroom
The 2021 acquisitions emphasized Salesforce integration, workload automation, and data services, aligning with IBM's push for AI-driven business processes. 7Summits, acquired in January, added Salesforce consulting to accelerate customer experience transformations. Taos, also in January, bolstered hybrid cloud managed services. myInvenio's April acquisition introduced AI-powered process mining for streamlining operations. Waeg, purchased in May, deepened European Salesforce expertise. Turbonomic, acquired in April and closed in June, provided application resource management for AIOps (valued at $1.5–2 billion). Bluetab, acquired in July, expanded data migration consulting in Europe and Latin America.
YearAcquired CompanyFocus AreaValueSource
20217SummitsSalesforce consultingUndisclosedIBM Newsroom
2021TaosHybrid cloud servicesUndisclosedIBM Newsroom
2021myInvenio/AI automationUndisclosedIBM Newsroom
2021Waeg consultingUndisclosedIBM Newsroom
2021TurbonomicAIOps/workload $1.5–2BIBM Newsroom; Reuters
2021BluetabData servicesUndisclosedIBM Newsroom
In 2022, IBM shifted toward , digital engineering, and amid rising ESG priorities. Envizi, acquired in January, delivered cloud-based environmental to support . Neudesic, purchased in February, added consulting for cloud and data projects. Dialexa, acquired in September, enhanced digital product engineering for innovation acceleration.
YearAcquired CompanyFocus AreaValueSource
2022EnviziSustainability analyticsUndisclosedIBM Newsroom
2022NeudesicDigital/Azure consultingUndisclosedIBM Newsroom
2022DialexaDigital innovationUndisclosedIBM Newsroom
By 2023, acquisitions prioritized , , and IT financials to support AI governance. StepZen, acquired in February, enabled faster development for access. Polar Security, purchased in May, automated and discovery ($60 million). Apptio, acquired in June and closed in August, provided IT business management for cost optimization ($4.6 billion). In December, acquired StreamSets and platforms from to advance integration and .
YearAcquired CompanyFocus AreaValueSource
2023StepZen/API managementUndisclosedIBM Newsroom
2023Polar Security $60MIBM Newsroom; TechCrunch
2023ApptioIT management/financials$4.6BIBM Newsroom
2023StreamSets & UndisclosedIBM Newsroom
The 2024 deals reinforced infrastructure automation and data platforms. Pliant, acquired in March, improved network IT automation for hybrid environments. , announced in April and closed in February 2025, integrated tools like Terraform and Vault for secure ($6.4 billion).
YearAcquired CompanyFocus AreaValueSource
2024PliantData platforms/automationUndisclosedIBM Newsroom
2024HashiCorpInfrastructure automation$6.4BIBM Newsroom
In 2025, IBM's focus intensified on AI and vector databases to power generative AI applications, alongside Oracle and cloud migration expertise. Applications Software Technology (AST), acquired in February, bolstered Oracle consulting for public sector cloud transformations. DataStax, acquired in May, enhanced watsonx with vector search for unstructured data. Hakkoda, purchased in April, added data and AI consulting expertise for modernization. SeekAI, acquired in June, enabled natural language querying of enterprise data as a foundation for watsonx AI Labs (undisclosed value). Txture, acquired in October, provided software for migrating and modernizing hybrid cloud estates.
YearAcquired CompanyFocus AreaValueSource
2025Applications Software Technology (AST) consultingUndisclosedIBM Newsroom; Consultancy.uk
2025AI/vector databasesUndisclosedIBM Newsroom; DBTA
2025HakkodaData/AI expertiseUndisclosedIBM Newsroom
2025SeekAIEnterprise AI queryingUndisclosedCIO.com
2025Txture migration/modernizationUndisclosedIBM Newsroom
These acquisitions collectively positioned IBM as a leader in AI-integrated hybrid cloud solutions, with total disclosed values exceeding $12 billion and a strategic emphasis on open ecosystems built on prior investments like .

Spin-offs and divestitures

Spin-offs

IBM has undertaken several major spin-offs to divest non-core business units, enabling a strategic refocus on high-growth areas such as hybrid cloud computing and while unlocking shareholder value through tax-free stock distributions to IBM shareholders. These separations have allowed IBM to streamline operations and concentrate resources on innovative technologies, with the spun-off entities operating independently to pursue specialized markets. In 1991, IBM spun off its printing and peripherals division, encompassing keyboards, typewriters, and printers, into International, Inc., through a that established the new company as an independent entity focused on computer peripherals. This move separated legacy hardware operations from 's core computing business, allowing to innovate in printing technologies while shifted toward enterprise systems. Between 2019 and 2020, IBM separated its Watson Marketing business, which provided AI-powered , , and advertising tools, into a standalone company named Acoustic, backed by . The spin-off enabled Acoustic to operate independently as a marketing cloud provider, emphasizing AI-driven solutions tailored for enterprise , while IBM refocused on broader AI applications beyond marketing. The most significant spin-off occurred in 2021 with , 's managed infrastructure services unit, which generated approximately $19 billion in annual revenue and was separated as the world's largest IT services spin-off to date. distributed 80.1% of Kyndryl's shares to its shareholders in a tax-free transaction, retaining 19.9% initially, allowing Kyndryl to independently design, build, and modernize customer technology environments. This separation sharpened 's emphasis on hybrid cloud platforms and AI, positioning both companies for agile growth in their respective domains.

Major asset sales and divestitures

IBM has strategically divested various hardware, , and specialized product lines to third parties throughout its , enabling a pivot toward software, services, and . These asset sales, often involving established brands and operations, generated capital while reducing exposure to commoditized markets like personal computing and chip manufacturing. Key transactions highlight IBM's efforts to streamline operations and fund high-growth areas. In 1988, sold its copier sales and service agreements in 16 countries to , transferring responsibility for an existing customer base and rental contracts to bolster Kodak's position in the office equipment market. This divestiture allowed IBM to exit a segment outside its core computing focus, with Kodak agreeing to market IBM-manufactured copiers under the IBM logotype until contracts expired. Four years later, in 1992, IBM completed the sale of its remaining 50 percent stake in Rolm Company, a marketing unit, to AG, following a 1989 joint venture that had already transferred and development operations. The transaction marked IBM's full exit from the telecom hardware sector, where Rolm had been integrated since IBM's 1984 acquisition of the company. integrated the assets into its broader communications portfolio, retaining commitments to IBM's employment practices for affected staff. A pivotal divestiture occurred in 2004 when sold its personal computer division, including the iconic laptop line, to for $1.75 billion in cash and stock. The deal encompassed global manufacturing, , and for desktops, notebooks, handhelds, and related services, positioning as the third-largest PC maker worldwide at the time. retained focus on enterprise servers and services, licensing its brand to for five years post-sale. In 2012, IBM divested its Retail Store Solutions business, which provided point-of-sale hardware and software to global retailers, to Toshiba TEC Corporation for $850 million. The transaction included IBM's worldwide POS terminals, self-checkout systems, and associated services, allowing Toshiba to expand from fourth to first in the POS market. IBM shifted resources away from retail hardware toward analytics and software solutions for the sector. Building on its partnership with Lenovo, IBM sold its x86-based server business in 2014 for $2.3 billion, comprising cash and Lenovo stock, along with approximately 7,500 employees. The assets included System x, BladeCenter, Flex System blade servers, switches, and related storage software, enabling Lenovo to strengthen its data center offerings. This move further distanced IBM from low-margin commodity hardware, emphasizing high-end Power and mainframe systems. In 2015, IBM transferred its Microelectronics Services business, encompassing semiconductor manufacturing operations and facilities in , and , to . Under the agreement, valued at $1.5 billion paid by IBM to GlobalFoundries over three years, the deal included , technologies, and about 1,000 employees focused on chip fabrication for external clients. IBM retained design capabilities but offloaded capital-intensive foundry operations to prioritize software and . That same year, sold specific products, including Rational System Architect for modeling, to , with terms undisclosed. The transaction transferred the tools and customer base to UNICOM, allowing to consolidate its software portfolio around higher-priority assets like Watson and cloud platforms. In January 2022, sold its healthcare data and analytics assets from the Watson Health business to , an investment firm, for an undisclosed amount. The assets, which included clinical development solutions and health insights platforms, were rebranded as , enabling the new entity to operate independently in the healthcare technology market. This divestiture marked 's exit from much of its healthcare AI initiatives, refocusing resources on enterprise hybrid cloud and general AI applications. These divestitures collectively raised billions in capital, enabling investments in transformative acquisitions such as the $34 billion purchase of in 2019, while significantly reducing IBM's hardware footprint from over 50 percent of revenue in the to approximately 24 percent by 2024. This strategic refocus enhanced margins and positioned as a leader in hybrid cloud and AI services.

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