WESTBORO, Mass. — IBM said Tuesday it would buy Informix Corp.’s database business for $1 billion cash in an effort to bolster its data management business.
The companies said they expect the deal to close in the third quarter, when Informix will be renamed Ascential Software.
Informix products process data for customers in retail, financial services, government and other industries. Major customers include Verizon, Deutsche Telekom, Sears and Sabre.
Informix said it would use part of the proceeds — expected to total $800 million after taxes — to back its database management software business, and would also return a portion to shareholders through either a stock repurchase or a special dividend.
The division being sold to IBM has about 2,500 employees. The portion of Ascential that will remain has about 1,000.
Westboro-based Informix also announced an alliance in which IBM will market and sell e-business products using Ascential products.
“Customers are aggressively investing in data management software because data collection, storage and use are at the core of a successful e-business,” said Sam Palmisano, president and chief operating officer of Armonk, N.Y.-based IBM. “This acquisition of Informix allows IBM to bring the benefits of leadership database technologies to more customers faster.”
Informix made the announcement while reporting a fourth-quarter net profit of $18.3 million, or 6 cents per share, before charges, down from $27.1 million or 9 cents per share a year ago.
IBM rose 67 cents to close at $112.67 Tuesday on the New York Stock Exchange, while Informix was down $1.94 a share, at $5.10 on the Nasdaq Stock Market.
