There’s been talk about this sale for years. I personally didn’t really think it was going to happen until all the consolidation in the BI space this past year. Cognos was the big dog, a long-time IBM partner, and I think IBM needed to pick them up if only to keep others from buying them and shutting IBM out of the space. This is IBM largest ever acquisition, though I bet an inflation adjusted $3.5 Billion for Lotus in 1995 would edge it out. Anyhow, I think this is a play IBM had to make and had to overpay (though not as much as with ISS and others last year) to keep others out. I don’t know how to put a price tag on defensive postitioning, but you really can’t fault IBM for this move.

Marketwatch has a news story on the purchase here.

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