IBM gains EA software, expertise with Telelogic acquisition

Telelogic was a major provider of tools for building government enterprise architectures

• By Joab Jackson, Michael Hardy
• Jun 12, 2007

IBM is in the process of acquiring Telelogic, a Swedish company that creates tools for managing large software development projects, as well as for composing enterprise architectures.

In a letter to Telelogic customers, company CEO Anders Lidbeck noted that the company's products will be added to IBM's Rational Software unit. "Telelogic's technology, knowledge and products will bring considerable strength to the Rational portfolio," he said.

Although primarily known for providing software to manage the application development process, Telelogic also has a suite of enterprise architecture tools. In 2005, Telelogic purchased Popkin Software, which sold an EA tool called System Architect. The company developed an extension to this product line to encompass the Pentagon's Defense Department Architecture Framework.

A Government Accountability Office report published last summer found that System Architect was the most widely used EA product in the government agencies it surveyed. The Army Morale, Welfare and Recreation agency, the Federal Emergency Management Agency, and the Air Force have all used the System Architecture.

In addition to the software, IBM will also gain more development expertise in enterprise architecture. Popkin Software founder and Telelogic chief strategist Jan Popkin, for instance, has been a vocal observer of how enterprise architectures were developed in the government space.

IBM's Rational line of software centers around the management of the development and maintenance of large applications. The company's Rational software was also cited by GAO as being used for EA work, though not as widely as Telelogic's software was.

IBM will offer about $745 million to purchase outstanding shares of Telelogic. It needs to obtain acceptance from 90 percent of the Telelogic stock owners as well as address any regulatory issues that might arise.

The deal is expected to close in the third calendar quarter of 2007.