subscribe: Posts | Comments | Email

IBM to Acquire Sterling Commerce- A Dramatic and Far Reaching Announcement

Comments Off

There was a rather dramatic but not unexpected announcement today concerning supply chain technology.  IBM has entered into a definitive agreement to acquire Sterling Commerce from its current corporate owner AT&T.  The deal, which is expected to close in the second half of 2010, calls for an all-cash transaction of $1.4 billion, and AT&T anticipates recording a one-time $750 million gain in the quarter in which the transaction closes. SBC Communications, which later became AT&T, originally acquired Sterling in 2000 at the near height of the B2B Internet era for $3.9 billion in stock. Supply Chain Matters first take at this acquisition is a mixed one, and that is why we chose to utilize the word ‘dramatic’.  Sterling customers gain the deep pockets and reputation of IBM, one of top global IT providers.  But at the same time, certain flexibilities in the use and deployment of B2B integration components surrounding […]