Technology giant makes a move after rivals snap up business intelligence companies

IBM is to buy business intelligence (BI) software company Cognos for $4.9bn (£2.37bn), the latest a number of other acquisitions in the BI sector.

SAP bid €4.8bn (£3.38bn) for Business Objects in October, while Oracle paid $3.3bn (£1.6bn) for Hyperion Solutions in March.

All three deals show that business analysis software is a growing market.

IBM will pay $58 (£28) a share for Cognos in a cash deal which should be closed by the first quarter of 2008.

IBM and Cognos already had an existing business partnership.