IBM and Cognos have announced the two companies have entered into a definitive agreement for IBM to acquire Cognos, a publicly held company based in Ottawa, Ontario, Canada, in an all-cash transaction at a price of approximately $5 billion, or $58 per share. The acquisition is subject to Cognos shareholder approval, regulatory approvals, and other customary closing conditions. It is expected to close in the first quarter of 2008.

The acquisition of Cognos supports IBM's Information on Demand strategy, a cross-company initiative announced in February 2006 that combines IBM's strength in information integration, content and data management, and business consulting services to unlock the business value of information. Integrating Cognos, the 23rd IBM acquisition in support of its Information on Demand strategy, will enable new business insights to be delivered to a broader set of people across an organization, beyond the traditional users of business intelligence.

IBM says the acquisition fits squarely within both its acquisition strategy and capital allocation model, and it will contribute to the achievement of the company's objective for earnings-per-share growth through 2010.

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