IBM splurges $740m on asset management firm

IBM plans to spend $740m in cash to acquire MRO Software, a company that builds applications for managing industrial equipment.

MRO has customers in the manufacturing, utility and transportation industries that use the company's so-called asset management tools for keeping tabs on physical assets such as trucks and refineries.

In the past two years, MRO has expanded into IT asset management as well, a company spokesperson said on Thursday.

IBM said it will incorporate the asset management tools into its Tivoli line of systems management software. MRO will operate as a business unit within Tivoli.

Al Zollar, Tivoli general manager, said in a statement: "This acquisition will provide companies with a single view into all of their assets, helping them to maximise efficiencies, drive productivity and innovate business processes across the enterprise."

MRO Software's products are built using a services-oriented architecture, or SOA, which will make product integration easier, the companies said.

The two companies have been partners since 1996, when IBM acted as a systems integrator in implementing MRO Software.

The acquisition comes one day after IBM bought Webify Solutions, which builds SOA software for the insurance and finance industries.

IBM's software group has been a consistent acquirer of both large and small companies over the past 10 years, having made more than 50 acquisitions.

Martin LaMonica writes for CNET News.com