IBM plans to buy MRO Software for $740 million

Staff -- Control Engineering, 9/1/2006

IBM announced plans to acquire MRO Software Inc., a publicly held company based in Bedford, MA, in a cash transaction of approximately $740 million. The acquisition (subject to MRO Software shareholder, regulatory reviews, and other customary closing conditions) is expected to close in fourth-quarter 2006.

MRO's asset and service management software and consulting helps companies manage how they buy, maintain, and retire assets, such as production equipment, facilities, transportation, and information technology (IT) hardware and software. Industries include utilities, manufacturing, energy, pharmaceutical, and telecommunications. MRO Software has produced double-digit growth since the company reported revenues of $199.2 million for the fiscal year ending Sept. 30, 2005.

This acquisition builds upon IBM's strategy to leverage business consulting, IT services, and software to develop repeatable tools that help clients optimize business, IBM says. According to an IBM press release, “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.” IBM intends to incorporate MRO software technology into its Tivoli software. Consolidated management of assets such as networks, RFID, embedded chips, and IP addresses can save resources, IBM suggests. www.ibm.com, www.mro.com