IBM acquires Net Integration Technologies Inc

Venerable Tech Company International Business Machine said on Friday that it will purchase the Toronto-Based, privately held Net Integration Technologies, a relatively unknown, Canadian company which makes a living out of selling server software services to Small and Medium Businesses.

Under undisclosed financial terms, IBM, which is also the world's second largest software maker, will incorporate NIT into its Lotus Notes division.

NIT's Linux-based server package will go head to head against Microsoft's Small Business Server in a bid to revive Lotus Notes fledging market share and turn to SMB for future growth.

When it comes to collaboration, competitor Microsoft owns 62 percent share of the market comprising of enterprises with more than 100 users versus 26 percent for IBM's Lotus notes.

The acquisition is the latest in a long run of purchases which include Cognos Inc for about USD 5 billion, Electronic payments specialist ACI Worldwide, digital storage systems manufacturer XIV Ltd and Telelogic AB. In total, IBM acquired nine companies in 2007.

Meanwhile, IBM's shares jumped by 2.3 percent on Friday, closing at USD 103.40 after Big Blue reported that its profits would beat estimates thanks partly to a booming Software business, which comes second only to Microsoft.