IBM to Acquire Softek

IBM (NYSE: IBM) today announced a definitive agreement to acquire Softek Storage Solutions Corporation, a privately held company based in Vienna, Virginia. Financial terms were not disclosed. The acquisition is subject to regulatory approvals and other customary closing conditions. Upon completion of the agreement, Softek will become part of the Storage and Data Services business unit in IBM Global Technology Services.

The acquisition of Softek is the latest example of IBM's continuing strategy to blend software, hardware, and research into higher-margin, standardized services that can be used with multiple clients to help them transform their businesses.
IBM will integrate Softek's data mobility technology and best practices with IBM's methods and expertise in storage and data services. As a result, IBM and its business partners will help clients increase the flexibility, efficiency and reliability of moving data, enabling them to quickly respond to market needs and seize new opportunities.

Softek's patented Transparent Data Migration Facility (TDMF) solution enables a simple, unified approach to the non-disruptive movement and management of data across storage vendor platforms and operating system environments, as part of an information technology (IT) infrastructure change. By using Softek's solutions, clients can improve their ability to migrate data while keeping data online and applications available for end users.

Businesses increasingly require the ability to cost-effectively move data in a standard, reliable and timely manner, without impacting business operations. IBM has a significant opportunity to meet the market need for a standard solution for data migration, while extending its leadership in storage and data services.

"As data capacity and compliance requirements continue to increase, companies depend on continuous access to their business-critical information," said Val Rahmani, general manager, IBM Global Technology Services. "Softek's data migration technology will complement IBM's Information on Demand strategy and significantly bolster our Storage and Data Services portfolio."

Softek's clients include British Telecom, KeyCorp, Lufthansa, the Principal Financial Group and more than half of the Fortune 1000 companies. IBM has been a Softek global partner since 1996, and has used Softek's award-winning products to migrate data on thousands of services engagements worldwide. In addition to IBM, Softek has a strong global network of partners, distributors and resellers.

"Clients are looking for greater flexibility and choice when selecting solutions that can reduce the risk and complexity associated with managing and moving data regardless of distance or vendor," said Steven Murphy, president and chief executive officer of Softek. "Our market-leading TDMF solution is trusted by many of the world's top companies to move data non-disruptively. We are excited to become a key player in IBM's strategy to provide clients a simple and unified portfolio of services that help them minimize business interruptions when optimizing and transforming their businesses."

The transaction is anticipated to close during the first quarter of the 2007 calendar year.

For more information about IBM, go to www.ibm.com For more information about Softek, go to www.softek.com