IBM Buys AT&T』s Sterling Commerce for $1.4 Billion

Ian Ritz
Epoch Times Staff

IBM finalized a deal with AT&T Inc., securing ownership of the communication giant』s Sterling Commerce business integration and system networking business.

Sterling Commerce was relinquished to IBM for $1.4 billion in cash Monday. ATT&T sold the Ohio-based company after quiet negotiations that will expand IBM』s presence in the world of business technology organization.

Sterling Commerce currently assists 18,000 global customers with streamlining their business networks and enhancing their preexisting business models. A recent statement from IBM stated that the company executes more than 1 billion annual business transactions.

「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,」 read a recent statement from IBM.

It seems involvement with IBM will be a big push for Sterling Commerce. The company was on the back burner with AT&T, which seems to be focused on its telecommunications businesses rather than streamlining professional business functionality and communication.

IBM believes that it can enhance the capabilities of Sterling Commerce, which describes itself on its company website as a group that 「helps companies connect, communicate, and collaborate with their customers, partners and suppliers so they can increase revenues, reduce costs and protect their reputation.」 Sterling Commerce Executive Officer Bob Irwin is a major proponent of the deal.

「The broad global reach and additional capabilities IBM offers make this acquisition great news for our customers and partners. 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,」 said Irwin in a statement.

The deal will not be officially closed until after the second quarter. The 2,500 Sterling Commerce workers will integrate with IBM』s Web Sphere, team which is a subdivision of IBM』s Software Group.

There has not been a significant change in either company』s stock value since the information regarding the transaction was released. IBM stock value hit its high for the month of May on the 12th, at $132.68 a share.