IBM Builds Warchest: More Acquisitions Ahead?IBM Builds Warchest: More Acquisitions Ahead?

100 Years Of IBM: 25 Historic Milestones

IBM has issued two series of notes worth a combined $1.85 billion, funds that could, among other things, be used to fuel Big Blue's growing appetite for acquisitions, according to papers the company filed with the SEC on Monday.

One series caps out at $1.35 billion and offers an annual interest of 0.875% and a maturity date of Oct. 31, 2014, while the other, worth $500 million, offers 2.9% through Nov. 1, 2021. IBM said funds raised through the offering would be used for general corporate purposes, such as debt repayment, stock redemptions, business expansion, and "possible acquisitions."

While the language is boilerplate for such offerings, it may be of particular significance in this instance given IBM's recent spate of acquisitions and comments made last week by a senior executive.

This year alone, IBM has announced or completed buyouts of five companies, including the $387 million acquisition made public in September of risk analysis specialist Algorithmics. Also since January, IBM has inked to deals to acquire Tririga, i2, Q1 Labs, and private cloud developer Platform Computing.

Steve Mills, IBM's senior vice president for software, last week told information that the buyouts would continue. "I've got a long list of things I'm interested in," Mills said, during an exclusive interview at the company's headquarters in Armonk, N.Y.

IBM has publicly committed to spend $20 billion on acquisitions through 2015. The company's list of targets could, unlike in past years, include applications makers.

"As you look over a ten-year period, the portfolio has gotten wider and deeper and therefore that opens up more possibilities so additional things could be brought in that can be leveraged. As the portfolio expands, you say, here's another adjacent area, that maybe five years ago that wasn't very adjacent," said Mills.

Some industry watchers believe IBM may be forced back into the applications market in a big way if only to counter moves by rival Oracle and its CEO Larry Ellison, whose buying binge has included ERP and CRM apps developers PeopleSoft, Siebel, JD Edwards and, in a deal announced last month, cloud CRM vendor RightNow.

IBM's 2014 and 2021 notes are underwritten by Barclays Capital, BNP Paribas, Credit Suisse, and several other investment houses. Last week, the company named global sales head Ginni Rometty as CEO, effective Jan 1, when current chief Sam Palmisano steps down.