IBM Offers $1B for Informix

IBM Corp. and Informix Corp. have entered into a definitive agreement for IBM to acquire Informix Software ? Informix's database company ? in a cash deal worth $1 billion. Included in IBM's acquisition is Informix Federal, Informix's division responsible for sales to the U.S. government.

The purchase strengthens IBM of Armonk, N.Y., in the distributed database business, an area the company considers a strategic priority. IBM's distributed database revenue grew 36 percent year-to-year in the first quarter of 2001, the company said.

The database operation represents about 80 percent of Informix's business. The remainder of Informix is concentrated in its Ascential Software business, an information asset management solutions business. When the sale is completed, the part not being bought by IBM will be renamed Ascential Software.