IBM Sells Unit, Expands Buyback

Dassault Systèmes SA agreed to pay $600 million to buy an International Business Machines Corp. (IBM) unit that sells Dassault’s design software.

The sale to Dassault, which makes software for computer-aided design and product management, removes one of the last vestiges of IBM’s once vast applications-software business. The two companies will retain a formal alliance in which the French company will recommend IBM services and infrastructure software.

Separately, IBM’s board expanded its stock buyback program, authorizing the spending of another $5 billion. It currently has $4.2 billion remaining from previous repurchase programs. The buyback announcement sparked a rally in IBM stock, which rose $1.06 to $121.17 in midday New York Stock Exchange trading.

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