Home > IBM to acquire MRO Software

IBM to acquire MRO Software

Supplier News

IBM and MRO Software have entered into a definitive agreement for IBM to acquire MRO Software, a publicly held company based in Massachusetts, in an all-cash transaction at a price of approximately $740 million, or $25.80 per share.

The acquisition is subject to MRO Software shareholder and regulatory reviews and other customary closing conditions. It is expected to close in the fourth quarter of 2006.

MRO is the leading provider of asset and service management software and consulting, used by many of the world’s top companies to efficiently manage how they buy, maintain and retire assets – such as production equipment, facilities, transportation and information technology (IT) hardware and software – in a wide variety of industries including utilities, manufacturing, energy, pharmaceutical and telecommunications.

This acquisition builds upon IBM’s strategy to leverage business consulting, IT services and software to develop repeatable tools that help clients optimise and transform their businesses.

MRO asset management technology and consulting services will be integrated into IBM Software and IBM Global Services offerings. As a result of the acquisition of MRO, IBM will be the only company to provide the solution to this convergence of IT and industrial assets.

The acquisition of MRO Software will strengthen the enterprise systems management capabilities of IBM’s Tivoli software portfolio, which produced double-digit revenue growth for the first two quarters of 2006, and enhance IBM’s already strong asset management consulting capabilities in IBM Global Services.

MRO Software has produced double-digit growth since the company reported revenues of $199.2 million for the fiscal year ending September 30, 2005.

Houghton LeRoy, ARC Advisory Group, commented, “IBM will become the leading supplier of Enterprise Asset Management software and services in the world when it acquires MRO Software this year.

This is a great opportunity for the service management and technology giant to create the next generation of asset management solutions based on proven best practices for managing all types of assets.

The sharing of knowledge and asset information between IT, operations, maintenance, engineering and other organisations can increase productivity, reduce costs and improve return on assets. The next generation solutions will require the continued support from the extensive partner channels of both companies to add value for many customers in many industries.”

Newsletter sign-up

The latest products and news delivered to your inbox