IBM to buy Blade Network to gain data-center switches

International Business Machines Corp., the world's largest computer-services provider, agreed to buy closely held Blade Network Technologies Inc. to gain products that connect server computers in company data centers.

IBM didn't give a value for the purchase in its statement today. Santa Clara, California-based Blade Network's investors include Garnett & Helfrich Capital and Juniper Networks Inc.

Sam Palmisano, IBM's chief executive officer, said in May he is planning to spend about $20 billion on acquisitions in the next five years. Blade Networks makes switches that connect servers, storage and networks in data centers, large rooms of computers that handle corporate tasks.

IBM, based in Armonk, New York, gained $2.44 to $134.11 in New York Stock Exchange composite trading on Sept. 24. The shares have added 2.5 percent this year.

IBM is bolstering its data-center offerings as rivals expand in corporate computing. Oracle Corp., the world's second- largest software maker, bought Sun Microsystems Inc. for more than $7 billion in January. Hewlett-Packard Co. acquired data- storage maker 3Par Inc. for $2.35 billion this month, after a bidding contest with Dell Inc.