The European Commission has finally given the go-ahead to IBM's planned takeover of Swedish software development tool vendor Telelogic.
IBM bid around US$745 million for Telelogic last June. Despite considerable overlaps in their business activities, the commission concluded after an in-depth probe that the deal wouldn't hamper fair competition in the software development tools market.
The commission has decided the two companies target distinct and separate customer groups and are therefore not in direct competition.
With the acquisition, IBM will become by far the largest vendor of two types of software development tools: software modelling and requirements management tools.
Modelling tools are designed to help software developers model the software before developing it. The future software product's functions are mapped out by creating visual models as well as by generating data definitions, programming specifications and ultimately the software code itself.
Requirements management tools are designed to streamline and document a development team's analysis of the requirements of a project.