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Cognos/IBM: More software consolidation. A leaky deal?Kedrosky-45X64.gif
Posted by Paul Kedrosky

With IBM announcing it bought Ottawa-based business analytics company Cognos for $5-billion, or 5x trailing revenues, software consolidation continues apace. A deal had been rumored for some time, and when tech was busy being wrecked last week that Cognos ended the week up 7.7%, quite a performance when the rest of tech was down by 10% or more. I like the deal, and it makes lots of sense -- even if Cognos shareholders aren't getting a big premium over Friday's close -- but the stock sure did act like a lot of people knew something in recent weeks. As a related aside, if you're looking for other speculative Canadian software buyout candidates, Open Text is a possibility. Lots of chatter about it possibly going to Oracle.

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