IBM spends US$1.7 billion on Sterling Commerce

IBM has agreed to purchase Sterling Commerce, a subsidiary of US telco giant AT&T.

The US$1.4 billion (AU$1.7 billion) deal will give IBM control over the company which specialises in handling transactions between businesses such as supplier purchases, partner transactions and manufacturing material deals.

IBM said that the newly acquired firm will be integrated into its middleware business, particularly its supplier and partner transaction software and service offerings.

Additionally, the company sees the acquisition adding new capabilities to its analytics and business process management offerings.

"This acquisition will give IBM new tools to help clients build dynamic business networks that connect partners, suppliers and clients and deliver a consistent customer experience across channels," said IBM WebSphere general manager Craig Hayman.

"In addition, the fact that much of this can be done in the cloud will make it compelling to large numbers of our customers."

The company said that it expects to close the transaction sometime in the second half of the year. Once completed, the deal will bring some 2,500 former Sterling Commerce employees into IBM's WebSphere software group.