IBM has agreed to acquire Rational Software for about $2.1 billion in cash or $10.50 per share.
Shares in Rational Software, a provider of tools and services for business applications and software products and systems, closed yesterday at $8.17.
According to IBM, Rational Software provides a software development platform that can improve the speed, quality and predictability of software projects.
With headquarters in Cupertino, California, and Lexington, Massachusetts, Rational has over 3,400 employees and customers in 89 countries.
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IBM said it intends to merge Rational Software's business operations and employees into the IBM Software Group as a new division and fifth brand, joining WebSphere, Lotus, Tivoli and DB2.
PA