IBM has announced the completion of its approximately $340 million USD tender offer for the shares of ILOG. The tender offer, announced July 28, 2008, was finalized after IBM acquired all outstanding stock in ILOG and satisfied the other conditions of the offer.

ILOG has more than 2,500 customers, 850 employees and operations in 30 countries around the world. The ILOG Business Rule Management System, Optimization, Visualization, and Supply Chain Management portfolios will build upon IBM software and business process management leadership across a broad range of applications and environments.

ILOG technology will add capability across IBM's software platform and the addition of BRMS will provide another dimension to the IBM BPM portfolio. This includes rules and business optimization for WebSphere and Information Management offerings, visualization for WebSphere, Lotus and Tivoli products and solutions, as well as enhanced optimization and efficient supply chain management assets for planning and scheduling within a service oriented architecture (SOA).

ILOG will become part of the IBM WebSphere software portfolio. ILOG clients' and partners' investments in existing IBM and ILOG technologies will be preserved, allowing customers to take advantage of the broader set of capabilities without the need to replace existing systems.

The acquisition of ILOG will strengthen IBM's business process management and SOA position by providing customers a broad set of rule management tools for information and application lifecycle management across a comprehensive platform, including IBM's WebSphere application development and management platform.  Many of the ILOG products will also become part of IBM's Industry Frameworks.

Clients who use role based business spaces will now be able to take advantage of the visualization capabilities of ILOG. In addition to diagramming and charting, these visualizations can be used by business space to provide more robust web-based BPM capabilities such as process modeling.