IBM Acquisition Plan Sends Micromuse Shares Up 38%

IBM Corp. said Wednesday that it would buy software developer Micromuse Inc. for $865 million, filling a gap in its Tivoli line of software that businesses use to manage large computer networks.

San Francisco-based Micromuse specializes in software that manages sophisticated communications networks.

IBM will pay $10 for each Micromuse share, a premium of nearly 39% over the stock’s closing price of $7.21 on Tuesday.

Armonk, N.Y.-based IBM already sells Micromuse software through a joint venture with the company. Buying Micromuse will give the computer giant a bigger presence in a rapidly growing area of the software industry, said Steve Mills, an IBM senior vice president who runs the company’s software business.

IBM shares rose 64 cents to $83.12, while Micromuse jumped $2.71, or 38%, to $9.92.