IBM and AT&T* announced they have entered into a definitive agreement for IBM to acquire Sterling Commerce from AT&T for approximately $1.4 billion in cash. The acquisition of the Dublin, OH-based company will expand IBM’s ability to help organizations create more intelligent and dynamic business networks by simplifying and automating the way they connect and communicate with customers, partners and suppliers both on-premise or through cloud computing delivery models.
Organizations are looking for ways to work more efficiently and profitably within their communities of business partners, customers and suppliers. IBM’s products and services complement the world-class business-to-business capabilities of Sterling Commerce and together enable the integration of key business processes through the entire cross-channel solution lifecycle — from marketing and selling to order management and fulfillment. These offerings also give clients the flexibility to manage their networks of business partners through public or private cloud computing environments.
Today, more than 18,000 global customers use Sterling Commerce offerings. The company enables more than 1 billion business interactions a year for clients in the financial services, retail, manufacturing, communications and distribution industries.
IBM sees these interactions growing dramatically due to the proliferation of electronic business transactions, from banks exchanging transaction data and manufacturers sourcing raw materials electronically, to retailers automating stock replenishment and managing orders online. Such intelligent transactions, and the software that supports them, help deliver the agility businesses need to be successful.
“The broad global reach and additional capabilities IBM offers make this acquisition great news for our customers and partners,” said Bob Irwin, chief executive officer, Sterling Commerce. “The combination of IBM’s products, services and skills with the Sterling Commerce B2B integration and cross-channel capabilities resulting from this acquisition is unparalleled.”
IBM and AT&T expect the transaction to close in the second half of 2010, subject to regulatory approvals and the satisfaction of other customary closing conditions. AT&T expects to record a one-time pretax gain of approximately $750 million in the quarter in which the transaction closes.
About Sterling Commerce
Sterling Commerce, an AT&T Inc. (NYSE: T) company, helps companies optimize and transform their dynamic business network to accelerate revenues and reduce costs. Sterling Commerce provides cross-channel and B2B solutions for more than 18,000 customers worldwide. More information can be found at www.sterlingcommerce.com.
AT&T Inc. (NYSE: T) is a premier communications holding company. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation’s fastest 3G network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. A leader in mobile broadband, AT&T also offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse(SM) and AT&T DIRECTV(SM) brands. The company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies by FORTUNE® magazine.