IBM sells software portfolio to HCL for $1.8 billion
IBM has announced the sale of select software to Indian-based tech firm HCL Technologies in a deal worth $1.8 billion.
The seven products IBM has decided to part with include app security platform AppScan and email and low code tools Notes & Domino, and represents a $50 billion market opportunity according to the two companies.
The other products include BigFix, for device security, Connections, for workstream collaboration, Portal, for building in-house web portals, and Commerce, for on-prem omnichannel e-commerce tools.
"Over the last four years, we have been prioritising our investments to develop integrated capabilities in areas such as AI for business, hybrid cloud, cyber security, analytics, supply chain and blockchain," said IBM's senior vice president for cognitive solutions and research John Kelly.
"We believe the time is right to divest these select collaboration, marketing and commerce software assets, which are increasingly delivered as stand-alone products.
"At the same time, we believe these products are a strong strategic fit for HCL, and that HCL is well positioned to drive innovation and growth for their customers."
IBM and HCL's longstanding relationship is exemplified by an existing intellectual property (IP) partnership the two firms had in place for five of these products, with just two products, Connections and Commerce, being new.
Three years ago the two firms founded a co-innovation facility to support Internet of Things (IoT) innovation for the benefit of enterprise customers.
"We continue to see great opportunities in the market to enhance our Mode-3 (Products and Platforms) offerings," said HCL's president and CEO C Vijayakumar.
"The products that we are acquiring are in large growing market areas like Security, Marketing and Commerce which are strategic segments for HCL.
"The large-scale deployments of these products provide us with a great opportunity to reach and serve thousands of global enterprises across a wide range of industries and markets."
The sale will be completed by approximately mid-2019 subject to regulatory approval.