IBM to Acquire Application Service Provider CorioBy Renee Boucher Ferguson | Posted 2005-01-25 Email Print
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The purchase, for $182 million in cash, is expected to help IBM's hosted application services business. Besides software as a service, Corio also offers professional services, applications management and infrastructure services on a pay-as-you-go model.IBM on Tuesday announced its acquisition of Corio Inc., an enterprise application service provider, for $182 million in cash. The purchase is expected to help IBM's hosted application services business.
The acquisition, subject to regulatory and Corio shareholder approval, is also expected to boost IBM's presence in the SMB (small and midsized business) arena, where Corio has a presence.
Despite little association with the SMB space by many companies, IBM has been delivering services to that sector for the past 10 years and earns about 20 percent of its revenues there, officials said.
Once the deal is done, George Kadifa, CEO of Corio, will continue to manage the company. He will also take on responsibility for IBM's application services initiative.
Corio employees will become IBM employees. The deal is expected to close within 60 days.
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