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IBM to buy Rational Software for $2.1 billion

Published on .

New York--In its latest foray into the software development market, IBM Corp. said it would buy Rational Software Corp. for $2.1 billion. IBM said it would pay $10.50 cash per share for Rational, a Cupertino, Calif.-based software company that develops programming tools for software developers. The deal is IBM's largest acquisition of a software company since it bought Lotus Notes Corp. for $3.5 billion in 1995.
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