IBM Snaps Up Data Integration Player Ascential

Ascential specializes in data-integration products and tools that cleanse data between disparate systems and applications, transform data into like formats, and help integrators and users populate data warehouses. The company's products are expected to complement IBM's stable of data-management infrastructure software, which runs the gamut from the flagship DB2 relational database to WebSphere Information Integrator, a tool that fuels data federation so that information can be pulled virtually from any number of back-end systems, according to IBM officials.

Why did IBM choose to buy vs. build the data-integration capabilities that Ascential brings to bear? That's simple, according to Janet Perna, general manager of IBM's data-management software group, where Ascential's technologies and employees will now make their home.

"We wanted to take advantage of market momentum and get to market faster," Perna said today. "Ascential has strong domain expertise and experience in data cleansing and transformation, as well as a strong customer base. It was a very synergistic type of acquisition, and completes our portfolio quickly."

The deal is expected to close, pending regulatory approvals, by the end of the second quarter 2005, Perna says.

Perna says that partners of both Ascential and IBM will continue to play a key role in creating, selling and deploying solutions that leverage the integration technologies. IBM and Ascential themselves have been business and technology partners for the past four years, completing many of their joint deals through IBM's Business Consulting Services group, she adds.

During the next six-to-eight-week transition, IBM will be deciding how it will incorporate Ascential's wares into its own middleware portfolio. Tentative plans call for products to be integrated, while also having IBM and its business partners market and sell Ascential-branded technologies separately.

"IBM is addressing what is clearly one of today's most critical business priorities," says Judith Hurwitz, president of analyst firm Hurwitz and Associates. "Helping companies integrate, manage and optimize vast amounts of data within and across enterprises."

Where this leaves Informatica, a major IBM partner and chief rival in the data-integration space to Ascential, remains to be seen. Perna says that she expects that relationship to continue and for both companies to serve their mutual customers.

Westboro, Mass.-based Ascential marks the third major Massachusetts ISV that IBM has purchased in the past 10 years, adding to Lotus Development and Rational Software, both of which are now singular brands within IBM. Perna says all 1,000 employees of Ascential have been offered jobs with IBM and that there are no relocation plans for Ascential's headquarters at present.