PARIS ILOG SA (Gentilly, France) announced its board of directors has received and approved a proposed acquisition agreement from IBM Corp. (Armonk, New York). If finalized, the transaction would enable IBM to combine its business process management, business optimization, and service oriented architecture technologies with ILOG’s business rules management systems software.
The cash tender offer, IBM said, will be at a price of €10 per ordinary share and the U.S. dollar equivalent per American Depositary Share based on the Euro/U.S. dollar exchange rate as of the settlement of the tender offers, amounting to an aggregate purchase price of about 215 million euros ($340 million) on a fully diluted basis.
This price represents a premium of approximately 56 percent compared to ILOG's one month average of closing share prices prior to July 28, 2008, and a 37-percent premium to the closing price of Friday, July 25.
“This combination will allow us to dramatically extend our market reach and realize the full potential of all of our technologies while protecting investments of ILOG's customers now and into the future," commented Pierre Haren, ILOG's chairman and CEO.
Founded in 1987, ILOG provides business rule management system as well as optimization and visualization software components. Headquartered in France and in California, ILOG has operations in the United Kingdom, Germany, Spain, Japan and Singapore.
ILOG employs 850 people worldwide and published revenues of $161 million for fiscal year 2007.