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25 Jan 2005:
IBM and Corio, Inc. today announced the two companies have entered into a definitive agreement for IBM to acquire Corio at a price of $182 million in cash, or $2.82 per share. The transaction, which is subject to regulatory and Corio stockholder approvals, is expected to close within 60 days.
A marketplace shift is underway because clients of all sizes are under pressure to do more, faster with application software to improve business performance. The acquisition is expected to strengthen IBM's application services portfolio by adding Corio's capabilities and technologies which facilitate rapid application deployment and automated application management for clients. The acquisition is also expected to enhance IBM's application services capabilities for clients using business software from Ariba, Concur, E.piphany, Oracle, PeopleSoft, SAP and Siebel. In addition, Corio's capabilities complement IBM's strategy to offer more technology-based services, which help clients by automating inefficient manual IT tasks.
"Clients of all sizes are searching for ways to drive greater efficiency in their business performance, and application management is often a critical factor," said Jim Corgel, General Manager, Small and Mid-Sized Business, IBM Global Services. "This acquisition is good for clients because it helps give them faster implementation, increased ease of use and variable cost hosting solutions for many of the industry's leading business software applications."
Corio has been a leading enterprise application management provider since it was founded in 1998. Corio's Applications on Demand operational platform helps efficiently deliver applications as a service. Corio services and technologies enable flexible pay-as-you-go pricing, helping to minimize upfront costs and improve return on investment.
"By combining Corio's Applications on Demand platform with IBM's global reach and deep application hosting capabilities, we have created an unmatched combination to increase our already high level of client service," said George Kadifa, Chief Executive Officer, Corio. "We look forward to integrating and growing with IBM, to provide clients with the best application management services in the industry."
Following the completion of the acquisition, Mr. Kadifa will continue to manage Corio and will undertake additional responsibility for IBM's application services initiative. Through this acquisition, Corio employees will become IBM employees.
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