IBM Acquires Small Biz-In-A-Box VendorIBM Acquires Small Biz-In-A-Box Vendor

IBM said Friday that it's reached a deal to acquire Toronto-based Net Integration Technologies, a developer of an all-in-one business server aimed at small- and mid-sized companies.

Financial terms of the deal were not disclosed. IBM said it expects to close the acquisition in the first quarter of 2008.

NIT's small business server, called Nitix, includes Lotus Notes e-mail, file management, directory services, back up and recovery tools, and optional business applications. The Linux-based system is designed primarily for companies with little or no in-house IT support.

The company sells primarily to auto dealerships, law offices, real estate agency branch offices, and other small business environments.

"Small businesses need superior collaboration technology as much as large companies do," said Michael Rodin, GM for IBM's Lotus Notes unit, in a statement.

Sales to small businesses are becoming increasingly important to IBM. SMB revenues, which account for about 19% of the company's total sales, rose 11% in the fourth quarter to $5.4 billion, IBM said Thursday.

Overall, IBM reported that fourth quarter revenues increased 10% year-over-year to $28.9 billion. Earnings per share jumped 24% to $2.80 while net income rose 14% to $4 billion.

The NIT deal marks IBM's second announced acquisition in 2008. Earlier this month, IBM disclosed its purchase of XIV Ltd., a Tel Aviv-based manufacturer of high-performance digital storage systems.

IBM in 2007 announced nine acquisitions -- including a $5 billion deal to acquire Cognos, a Canadian developer of business intelligence software.