IBM to buy Canada's DataMirror for $161 million

In this file photo Chairman, President and Chief Executive Officer of IBM, Samuel Palmisano smiles during a business meeting in New Delhi May 8, 2007. International Business Machines Corp. said on Monday that it would buy Canada's DataMirror Corp. for $161 million to add functionality to its software that links databases to other computer programs. REUTERS/B Mathur

TORONTO (Reuters) - International Business Machines Corp. IBM.N said on Monday that it would buy Canada's DataMirror Corp. DMC.TO for about $163.5 million, continuing its push to expand software revenue through acquisitions.

IBM said it would buy all outstanding DataMirror common shares for C$27.00 cash each, or a total of C$170 million.

The news sent DataMirror’s shares soaring 18.7 percent, or C$4.20, to C$26.70 on the Toronto Stock Exchange in morning trade. The price marked a year high for DataMirror.

DataMirror’s technology helps companies capture and analyze data in real-time, identifying changes to databases and immediately alerting other computer programs of those changes. This gives those programs more current data.

The Markham, Ontario, company's 2,200 customers include FedEx Ground FDX.N, Priority Health, Tiffany & Co. TIF.N and Union Pacific Railroad UNP.N.

IBM said it expected the deal to close in the third quarter.

$1=$1.04 Canadian