IBM Buys PSI

IBM has acquired Platform Solutions Inc., a Sunnyvale, Calif.-based maker of mainframe clones. No financial terms were disclosed. The deal also represents the end of litigation between the two companies, based on IBM's 2006 lawsuit claiming that PSI had violated patent protections.

 

PSI had raised around $52 million in VC funding sincde spinning out of Fujitsu in late 2003, from Blueprint Ventures, Intel Capital, InterWest Partners and Investcorp.  

 

PRESS RELEASE 

IBM (NYSE: IBM) today announced it has acquired Platform Solutions, Inc. (PSI), a privately held technology company headquartered in Sunnyvale, California. PSI's technologies and employees will become part of the IBM System z business unit of the IBM Systems and Technology Group. Financial terms were not disclosed.

 

PSI's technologies and skills, along with its intellectual capital, will become part of IBM's long-term mainframe product engineering cycles and part of IBM's future product plans.

 

“IBM's strategy is to continually evolve our mainframe technology to help our clients tackle the most demanding business issues,” said Anne Altman, General Manager, IBM System z. “We will continue to move the mainframe forward through both IBM innovation and by acquiring new technologies. We welcome Platform Solutions, Inc. and look forward to collaborating with them.”

 

“We are pleased to become part of IBM, knowing IBM has the industry's most comprehensive vision for the future direction of enterprise computing, and has the requisite technologies to realize that vision,” said Michael Maulick, President and CEO, Platform Solutions, Inc. “This acquisition makes the most sense for our companies — to collaborate on future technology offerings and maximize our combined knowledge and skills for the benefit of IBM clients globally.”

 

As part of this acquisition, both IBM and PSI dropped their respective claims against each other.