Bloomberg News

IBM Said to Name Reardon as Head of M&A, Replacing Mendoza

July 27, 2011

(Adds analyst’s comment in third paragraph)

July 22 (Bloomberg) -- International Business Machines Corp., the world’s biggest computer-services provider, appointed Kevin Reardon as head of mergers and acquisitions, according to a person with direct knowledge of the situation.

Reardon, who has been general manager of intellectual property at IBM, is taking over from Elias Mendoza, the former global head of corporate development, said the person, who declined to be identified because IBM hasn’t announced the move. Mendoza joined Union Square Advisors LLC as a partner in New York, the firm said in a statement July 20.

“IBM’s acquisition strategy has been very consistent,” said David Grossman, an analyst with Stifel Nicolaus & Co. “They have focused on software and other technology assets that can be leveraged through their existing infrastructure and distribution.”

IBM, which has made more than 100 deals in the past decade, said last year it plans to spend about $20 billion on acquisitions through 2015. The Armonk, New York-based company had $11.7 billion in cash at the end of June.

IBM made 23 acquisitions worth $4.26 billion since Mendoza took over M&A in June 2009, according to data compiled by Bloomberg. Over that time, IBM’s biggest deal was the $1.7 billion purchase of analytics-technology provider Netezza Corp last year. The company has announced only one deal this year, according to Bloomberg data.

“The company’s competitive position allows it to be a very opportunistic buyer and generally avoid large marquee deals pursued by many of its enterprise peers,” said Grossman.

Mendoza, who joined IBM in 2006 as head of corporate development in Japan and growth markets, previously worked for Morgan Stanley in New York, London and Tokyo.

Doug Shelton, an IBM spokesman, declined to comment.

IBM climbed 28 cents to $185.18 at 4 p.m. in New York Stock Exchange trading, and has gained 26 percent this year.

--Editors: Peter Elstrom, Elizabeth Wollman

To contact the reporter on this story: Serena Saitto in New York at ssaitto@bloomberg.net.

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net; Peter Elstrom in New York at pelstrom@bloomberg.net.


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