IBM’s plans to buy business software maker Telelogic for about $833m hit a snag yesterday when the European Commission announced it had suspended its in-depth investigation of the deal until the companies provided it with more information.
The EC began its review of the deal for potential anticompetitive implications in October and had initially planned to rule on the matter by February 20. The regulator said it launched the investigation because it was concerned that the deal may give IBM too much power in the market for software modeling and requirements management tools.
A revised deadline for the EC’s ruling was not provided.
Sweden-based Telelogic has US headquarters in Irvine, California and employs more than 1,100 workers worldwide.