IBM in $1.4B Services Deal; Stock at 5-Year High

Posted July 16, 2007 9:02 a.m. EDT
Updated July 17, 2007 6:55 a.m. EDT

— IBM Corp. said Monday it has won a $1.4 billion outsourcing contract from AstraZeneca PLC, a seven-year deal aimed at helping the British pharmaceutical company manage its internal technology operations.

IBM will run servers, data storage, desktop computers and networking services for AstraZeneca around the world. The contract is an extension of a relationship the two companies have had over the previous seven years.

The deal was reached this month and will not affect IBM's second-quarter earnings, due to be reported Wednesday.

News of the AstraZeneca deal and the acquisition of another software firm lifted IBM's stock to a five-year high of $109.66 on Tuesday.

IBM is acquiring DataMirror Corp., a Canadian firm, for $163 million. DataMirror provides software designed to help enterprises get faster access to data.