IBM's Rational acquisition approved

IBM Corp. has cleared the final hurdles in its plan to acquire Rational Software Corp.

The 30-day waiting period required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has passed, and Rational's shareholders have approved the deal, Rational announced Jan. 22.

The federal government is one of Rational's main vertical markets. In its most recent fiscal quarter, ended Dec. 31, 2002, Rational drew about 10 percent of its $161.9 million in revenue from the sector, public relations manager John Coffey said.

IBM will pay about $2.1 billion in cash to acquire Rational, which has headquarters in Cupertino, Calif. Rational makes development tools to aid software designers.

The two companies expect to finalize the acquisition this quarter.