Tech Dealmaker Awards

A Bedford software company gained a global reach after its purchase by a computer technology giant.

MRO Software Inc. was acquired by IBM Corp. in an all-cash transaction at a price of approximately $740 million, or $25.80 per share in August 2006.

MRO had been a publicly held company based in Bedford that offered software that helped businesses manage how they buy, maintain and retire assets.

MRO Software’s asset management technology and consulting services is being integrated into IBM Software and IBM Global Services offerings.

“The IBM acquisition opens a world of opportunity for our clients and our employees. By integrating our asset management capabilities with IBM, we can offer our customers a complete asset management solution on a global scale,” said Chip Drapeau, president and CEO of MRO Software.

IBM established MRO Software’s operations as a business unit within IBM’s Tivoli software division, and incorporated MRO technology into Tivoli’s software offerings while marketing and selling MRO software through IBM’s and MRO’s sales channels and IBM business partners.

MRO customers included BP plc., Exxon Mobile Corp., China National Offshore Oil Co., Heineken International, Frito-Lay and DaimlerChrysler, company officials said.

MRO Software said it has produced double-digit growth since its reported revenue of $199.2 million for 2005. The company was founded in 1968 as Project Software & Development Inc, changing its name in 2001.

— Bridget Botelho is a freelance writer in Providence, R.I.

Category

Top Software/Services M&A Deals Sell Side

The Deal

IBM Corp. bought MRO for $741.9 million. Closed on Oct. 5, 2006.

Key Executives

Chip Drapeau, CEO, MRO Software; Peter Rice, CFO, MRO Software; Craig Newfield, legal advisor, MRO Software; Patricia Foye, marketing, MRO Software; Bob Clancy, human resources, MRO Software; Bill Sawyer, VP Tivoli Maximo operations, IBM; Jack Young, VP asset management development, IBM; Dick Cahill, head of sales, IBM; Rob Bloom, marketing, IBM.

Deal advisers

Legal: Foley Hoag LLP; Gesmer Updegrove LLP; Morse, Barnes-Brown & Pendleton PC.
Financial: The Goldman Sachs Group Inc.

• Platinum Sponsor:
• Gold Sponsors: Capital Source
  Silicon Valley Bank
  TM Capital
  Vitale, Caturano & Co.
• Silver Sponsors: Capital IQ
  Citizens Bank
• Supporting Sponsors: Mass High Tech
  Preston Productions
  Trinity Communications

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