IBM and Micromuse have agreed that IBM will acquire Micromuse in an all-cash transaction at a price of approximately $865 million, or $10 per share. The deal is expected to close in the first quarter of 2006.
Micromuse did great business with its NetCool network management and monitoring suite of products, riding the introduction of IP services in fixed line and mobile networks, providing service assurance information to large enterprise and carrier customers.
Its acquisition by IBM is a sign of the giant IT services company’s continuing move into network OSS and monitoring products and services. NetCool will give IBM a rival to HP’s OpenView products.
“Today’s networks are no longer just pipelines of data — customers are incorporating data, voice and video into their business operations at an astounding pace,” said Al Zollar, general manager, IBM Tivoli software.
IBM will use Micromuse software to complement its security management software by alerting IT staff and management about attempted network breaches and strengthen the IT service management capabilities of IBM’s Tivoli software portfolio.
Micromuse reported a 10% year-to-year revenue increase, to $160.8 million, for the fiscal year ended September 2005.