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Computer industry

IBM Acquires Trigo Technologies for Undisclosed Terms

Strategic Insights

— 2 min read

IBM Corp. has agreed to buy Trigo Technologies Inc. for an undisclosed amount, providing an exit for venture capitalists who invested close to $40 million in the company. Trigo's management and investors declined to disclose the purchase price. The acquisition is expected to close in the second quarter.

Trigo, a product management software company, was incubated with seed funding in 2000 by Globespan Capital Partners and had gone on to raise $39 million in funding. Barry Schiffman, executive managing director with Globespan Capital Partners, said the firm made 3.5 times its investment in Trigo. IBM will integrate Trigo's software into its Websphere Application Server line.

Trigo's flagship "product center" software helps retailers and manufacturers manage information about the products they make, service, and distribute. The deal is seen as a strategic move by IBM to expand its presence in the retail market space. Kara Romanow, research director at AMR Research, said IBM is acquiring one of the leaders in the product information management area, which sends a message to middleware companies like Oracle, SAP, and Microsoft.

Key Takeaways:

  • IBM is acquiring Trigo Technologies Inc. for an undisclosed amount
  • The acquisition provides an exit for venture capitalists who invested close to $40 million in Trigo
  • Trigo's management and investors declined to disclose the purchase price
  • Trigo's flagship software helps retailers and manufacturers manage product information
  • The deal is expected to close in the second quarter
  • IBM will integrate Trigo's software into its Websphere Application Server line
  • Trigo's incubator, Globespan Capital Partners, made 3.5 times its investment in Trigo
  • The acquisition is seen as a strategic move by IBM to expand its presence in the retail market space
  • Kara Romanow, research director at AMR Research, said the deal sends a message to middleware companies like Oracle, SAP, and Microsoft
  • Trigo's founder, Tom Reilly, said he was not looking to sell the company but felt the benefits of merging with IBM were stronger

Statistics:

  • $40 million: the amount invested by venture capitalists in Trigo
  • $39 million: the total amount of funding raised by Trigo
  • 3.5: the multiple return made by Globespan Capital Partners on its investment in Trigo
  • $500 million: the amount paid by Cisco Systems Inc. to acquire Monterey Networks in 2001
  • 2: the number of years Trigo has had a partnership with IBM

Sources:

  • "Trigo Technologies to Be Acquired by IBM," TheDeal.com
  • "Globespan Capital Partners Incubates Five Companies, Three Are Acquired or Go Public," TheDeal.com
  • "Trigo Technologies Raises $12 Million in Series C Funding," VentureWire
  • "IBM to Acquire Trigo Technologies," eWeek

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