IBM will acquire Princeton Softech Inc, Princeton- based privately held companythat provides leading data archiving, test data management, data privacy and data classification and discovery software. Financial details were not disclosed.

IBM says the acquisition would strengthen its cross-company information-on-demand business by enabling customers to address their escalating information management challenges and improve database performance by segregating historical data from current data and storing it securely and cost-effectively.

Princeton Softech''s test data management solutions also help customers protect data privacy and contain costs by creating realistic, right-sized test databases where sensitive data can be masked and protected. The combination of IBM and Princeton Softech, says Big Blue, will help customers reduce operational costs while avoiding performance degradation and effectively managing their compliance requirements.

IBM plans to integrate Princeton Softech''s product offerings into IBM''s Software Group as part of its Information Management Software division. The addition of Princeton Softech''s technology will expand IBM''s capabilities in the area of Enterprise Data Governance. In particular, Princeton Softech will boost IBM''s ability to offer clients integrated data classification, archiving, and test data management and data privacy solutions across heterogeneous application and database environments.

IBM''s strategy is focused on providing customers with the data they need when they need it in order to quickly respond to market needs, rapidly identify new business opportunities, efficiently ensure data governance and improve business results.

"Organizations of all sizes worldwide face the challenge of effectively managing their surging data volumes, particularly given growing governance and compliance requirements," said Ambuj Goyal, general manager, IBM information management.

"The combination of IBM and Princeton Softech will provide our customers and partners with a single solution to more effectively manage risk and keep up with the variety of regulatory and enterprise data governance requirements," Goyal adds.

As data retention needs intensify, customers are looking for ways to slash their escalating operating costs and maintain system responsiveness, while protecting the privacy of customer and employee information. Many organisations are finding that storage management is now or will soon represent greater than 50 per cent of their annual IT budget.

"Data archiving, test data management and data privacy software product segments are rapidly evolving as customers demonstrate a preference for complete, integrated solutions," said Paul Winn, Princeton Softech Chairman and CEO.

"We are pleased to have the opportunity to combine our Optim Solutions with IBM''s Information Management software offerings. Together, we can provide customers with a common platform that spans their heterogeneous environments."

Princeton Softech has approximately 240 employees and more than 2,200 companies rely on Princeton Softech''s solutions to maximize the business value of their enterprise applications and databases.

The acquisition is subject to regulatory approvals and is anticipated to close later in 2007.

The desire by businesses to access, manage and deliver information more efficiently is driving rapid change in the information technology marketplace. Companies grappling with government mandates and business demands are striving to capture and integrate information in a more seamless, real-time fashion across their enterprises.

IBM''s Information-on demand approach combines industry-specific expertise with advanced software, open standards and storage technology -- integrated via a services oriented architecture -- to manage, secure and deliver information as a service to solve business challenges.