Announced on June 11, 2007, the tender offer was completed after IBM agreed to accept 96.9 percent of stock ownership in Telelogic as well as other conditions, including necessary worldwide regulatory approvals.

Telelogic offers software to develop technical systems and enterprise architecture to more than 8,000 customers worldwide. The company is headquartered in Malmo, Sweden, and Irvine, California, with a staff of more than 1,200 employees and operations in 22 countries around the world.

IBM, Telelogic and business partners will collectively help customers deliver high quality systems to the market faster while reducing costs, says the company. The two companies will provide a comprehensive offering for defining, modeling, building, testing and delivering the software used in systems in a range of industries.

"Telelogic is an important element of our software and systems development and delivery strategy," says Dr. Daniel Sabbah, GM of IBM Rational Software. "Software is at the heart of embedded devices and systems. Whether it's used to develop the next generation of communication devices or systems for space exploration, this IBM technology has important implications for society."

Telelogic will report into the IBM Rational Software unit. Consistent with IBM's Software strategy, Telelogic clients' and partners' investments in existing IBM and Telelogic technologies will be preserved, allowing customers to take advantage of the broader set of capabilities without the need to replace existing systems.

The acquisition supports both IBM's acquisition strategy and capital allocation model, and will contribute to reaching the company's goal for earnings-per-share growth through 2010. IBM has invested more than $18 billion on public acquisitions since 1995, topping the technology industry with the highest volume of transactions.