IBM to pay AT&T $1.4B for Sterling Commerce

Acquisition strengthens Big Blue’s middleware offerings

IBM Corp. has agreed to buy business-to-business e-commerce software developer and AT&T Inc. subsidiary Sterling Commerce Inc. for $1.4 billion.

Sterling’s B2B capabilities are a good match for its own middleware products, IBM officials said May 24. Acquisition of the Dublin, Ohio-based Sterling will “give IBM new tools to help clients build dynamic business networks that connect partners, suppliers and clients and deliver a consistent customer experience across channels,” said Craig Hayman, IBM WebSphere general manager, in a written statement. "The fact that much of this can be done in the cloud will make it compelling to large numbers of our customers.”

Sterling has been aggressive in developing and implementing how its users can communicate, including its new Sterling Commerce Mobile Applications for the Apple iPhone.

“Mobile applications are becoming an integral part of how businesses simplify and enhance how their employees, customers, partners, and suppliers access and exchange business information,” Sterling said on its Web site.

More than 18,000 customers worldwide use Sterling’s software offerings, enabling more than a billion business interactions annually, IBM said. The company “sees these interactions growing dramatically due to the proliferation of electronic business transactions.”

AT&T acquired Sterling in 2005 in the same transaction in which it merged with SBC Communications Inc. SBC had acquired Sterling in 2000.

The companies expect the transaction to close in the second half of 2010, with 2,500 Sterling employees slated to become part of the WebSphere division of IBM's Software Group.

IBM, of Armonk, N.Y., ranks No. 18 on Washington Technology’s 2009 Top 100 list.

About the Author

Sami Lais is a special contributor to Washington Technology.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More

  • PROJECT 38 PODCAST

    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.