IBM will buy Cognos for $5 billion, the latest in a rash of “business intelligence” software acquisitions. The move could help IBM keep up with SAP AG and Oracle, each of which recently teamed with similar companies, the AP reports. The purchase price is a 9% premium over Cognos’ Friday close; both companies’ stocks rose on the news.
The software products gather and analyze business data, modeling the impact of major organizational decisions. IBM’s head of software denied the company was trying to keep up with the Joneses, saying, “We never do acquisitions…based on what others are doing.” Indeed, the company has been in a buying mood for years as it expands its software portfolio.