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Sunday, 12 October 2008 00:24 UK Bengaluru, India


 

IBM acquires Platform to escape EU questioning

No love lost

By Subhankar Kundu @ Thursday, July 03, 2008 11:55 AM

 
 

IBM has acquired Platform Solutions, the company that it earlier sued. The financial terms of the deal are yet to be made public.

IBM's strategic decision comes in the wake of increasing legal hassles over the case, and it seems that IBM preferred to cut the Gordian knot through an amicable settlement. Another reason for the acquisition is that IBM might be nervous, after European Union antitrust regulators declared that they would question IBM about its actions in the mainframe market based on the countersuit filed by Platform. IBM found the easiest way to escape from the EU probe is by acquiring the company itself.

Big Blue officials declined to comment. on whether the deal was struck because of the EU investigation.

IBM sued its mainframe competitor, Platform Solutions, a couple of years back, accusing it of theft of trade secrets and copyright violations. The Californian company hit back at IBM and filed a countersuit accusing it of antitrust violations.

The general manager of IBM System Z has welcomed the acquisition of Platform Solutions, and said the comany was looking forward to collaborating with it. President and CEO of Platform Solutions Michael Maulick seems to be quite content.

Both IBM and Platform will drop their respective suits filed in the US court. X

 
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