December 10, 2006
M/A: IBM acquires Consul
Today’s technology industry is constantly evolving, with new mergers and acquisitions taking place every week in a trend towards market consolidation. On December 7, 2006, IBM acquired Consul Risk Management, a provider of compliance and security audit software. This acquisition is just one of the several hundred to occur in the past year. Consul provides technology that uncovers insider threats and delivers reports designed to address customers’ compliance activities related to regulations, such as the Sarbanes-Oxley Act and the Health Insurance Portability and Accountability Act, and has more than 350 major client-customers worldwide, operating from its base in the Netherlands. IBM is ranked number 17 on Washington’s Top 100 List of major I/T providers, with over $9.1 billion in annual sales. From an industry standpoint, the merger marks a trend in major I/T providers utilizing leveraged buyout procedures with large amounts of debt to purchase smaller, regional software providers to bolster market position and share.