Business

IBM to Buy AT&T's Sterling for $1.4 Bil.
By wchung | 07 Jun, 2026

IBM Corp. said Monday that it is buying AT&T Inc.‘s Sterling Commerce unit, which makes software that helps businesses buy and sell to each other, for $1.4 billion.

The deal would be IBM Corp.‘s largest acquisition since it bought business software maker Cognos in 2008.

Sterling runs “collaboration networks” where companies can interact with vendors. It has 18,000 clients worldwide and enables more than 1 billion deals per year, IBM and AT&T said. Customers include H.J. Heinz Co., Motorola Inc., Boise Cascade LLC and Boston Market Corp. The parties would not provide a figure for the unit’s annual revenue.

AT&T Inc., then known as SBC Communications, paid $3.9 billion for Sterling in 2000, near the peak of the Internet bubble. The price tag was driven by forecasts that all “business to business” commerce would soon be conducted through online marketplaces not unlike a stock exchange, with demand dictating prices more efficiently.

The unit, which is based in Dublin, Ohio, has little connection to AT&T’s main telecommunications business and has maintained its own brand.

AT&T spokeswoman McCall Butler said AT&T’s business has changed since 2000, and Sterling is “no longer core to the company’s long-term strategic objectives.”

IBM said the deal complements its portfolio of business process integration and transaction software portfolio, which grew more than 20 percent in the first quarter of 2010.

The parties expect the deal to close in the second half of the year. AT&T expects it to result in a one-time pretax gain of approximately $750 million in the quarter it closes.

IBM is based in Armonk, N.Y, while AT&T is based in Dallas.

PETER SVENSSON, AP Technology Writer NEW YORK