Jun 5, 2013

Posted by in Stock Market News | 0 Comments

Active Runners: BlackRock (NYSE:BLK) and IBM (NYSE:IBM)

Active Runners: BlackRock (NYSE:BLK) and IBM (NYSE:IBM)

IBM is purchasing cloud computing firm, SoftLayer Technologies Inc., to grow its online software unit. Financial terms of the deal were not revealed on Tuesday.

SoftLayer is a privately held firm located in Dallas with 13 data centers in the US, Asia and Europe.

Software stored and accessed on the Internet is highly desired with businesses, as it lets employees in from any Internet-connected device.

IBM Corp. began its cloud business in 2007 and has invested $4.5 billion on cloud-related takeovers in the last five years, as per reported by spokeswoman Colleen Haikes. The Armonk, NY, firm predicts touching $7 billion annually in cloud revenue by the end of 2015.

The takeover is predicted to end in the third quarter. Once the deal is finished, SoftLayer and IBM’s existing SmartCloud unit will be united in a Cloud Services division under the management of Erich Clementi, a senior vice president at IBM.

BlackRock (NYSE:BLK), the world’s biggest fund manager, intends to issue Europe’s first cross-border exchange-traded fund (ETF) in a move it predicts will lower trading costs and attract more investors to the product.

ETFs track baskets of shares, bonds or commodities and are exchanged like stocks. They offer access to indices without having to purchase the underlying securities.

Right now, European ETFs are issued and exchanged on one or more national stock exchanges. The trades are then ended in the national securities depository of the country in which the trade was executed.

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