NEW YORK: International Business Machines Corp., the world’s largest computer-services provider, will continue an “accelerated pace” of acquisitions this year to increase sales growth at the company.
Acquisitions of smaller competitors give the company access to new customers and improve its internal operations, said the New York-based IBM.
The company has spent about $16 billion (Rs7,058 crore) purchasing more than 60 companies in the past five years. The acquisitions have bolstered IBM’s software division, its most profitable unit, offsetting slower growth at its computer and services units.
A company bought by IBM for less than $500 million between 2002 and 2005 on average doubled its revenue within two years of the purchase and generated pretax profit in the first year, IBM said.