IBM has announced that it will acquire ILOG, the Paris-based software company, in a deal valued at $340 million.

The company has announced plans to combine ILOG’s software with its business process management software and service oriented architecture technology. The deal is reported to be worth approximately €215 million, a 37 percent premium on ILOG’s Friday share price.

Tom Rosamilia, General Manager at IBM WebSphere, commented: "Companies across all industries are looking for technologies to help them manage their processes with more flexibility so they can keep up with changing business conditions. ILOG's software allows businesses to more effectively manage and automate the decision making process, giving companies an opportunity to react with incredible speed and accuracy. IBM has partnered with ILOG for over a decade, and by adding ILOG's capabilities to IBM's software portfolio, this is a great combination to provide value to our clients".