IBM has announced a definitive agreement to acquire Arsenal Digital Solutions, a privately held company based in Cary, North Carolina. Financial terms were not disclosed. The acquisition is subject to regulatory approvals and other customary closing conditions. Upon completion of the acquisition, Arsenal will become part of the Business Continuity and Resiliency Services (BCRS) business unit in IBM Global Technology Services. The transaction is expected to close in the first quarter of 2008.

An emerging worldwide leader in on-demand data protection, Arsenal delivers a comprehensive suite of information protection solutions. Arsenal's scalable on-demand services architecture provides customers with automated infrastructure management and gives Arsenal the unique ability to provide solutions to all segments of the marketplace.

IBM and Arsenal serve small and mid-market businesses as well as large enterprises that need to achieve data resiliency in light of increasing regulatory requirements, explosive data growth and evolving technology requirements. With the acquisition of Arsenal, IBM will provide global clients with security-rich information protection services designed to handle increasing data retention requirements. Arsenal brings unique capabilities in the on-line data protection market, complementing IBM Tivoli's flagship data protection offerings and IBM System Storage solutions designed to deliver the industry's most comprehensive portfolio for addressing enterprise information protection needs.

"Information protection is not optional for businesses today. Continuity of data, applications, and infrastructure means survival in a world that operates around the clock, regardless of a company's size or industry," said Philippe Jarre, vice president, IBM Global Business Continuity and Resiliency Services. "IBM's leading business continuity and resiliency services, combined with managed services from Arsenal, give IBM the most comprehensive range of information protection services, and provide clients the ability to back up and protect their information in a way that is integrated with their business continuity plan."

"As organizations grapple with stringent government regulations and the continuing explosion of business information, they seek a trusted provider of products and services that will meet their needs on a global scale," says Frank Brick, chairman and chief executive officer of Arsenal Digital Solutions. "Arsenal delivers a comprehensive information protection portfolio that is adaptable to address businesses of all sizes. Our on-demand capabilities, together with IBM's global reach and industry-specific knowledge, position us as a strong competitor in this rapidly growing market."

Arsenal's services are already used by thousands of clients in a wide range of industries including healthcare, hospitality, and manufacturing. Arsenal's strategic business partnerships with the world's leading telecommunications providers have helped the company become an industry leader in the on-demand data protection marketplace.

With 40 years of global experience in the business continuity space and more than 150 BCRS recovery centers worldwide, IBM has deep industry-specific knowledge and a broad range of major clients and leading services, for an unmatched end-to-end portfolio. Together with Arsenal, IBM will be a leading provider of information protection services for clients of all sizes.

IBM plans to make Arsenal solutions available worldwide through IBM's BCRS services business, through Arsenal's existing channel partners, including telecommunications providers, as well as direct through IBM.com and from select business partners.

The acquisition of Arsenal will bolster IBM's strategy to blend software, hardware, and research into replicable, asset-based standardized services that can be used with multiple clients to help them transform their businesses.

More information about IBM and Arsenal is available at www.ibm.com and www.arsenaldigital.com.