International Business Machines (NYSE:IBM), the world's largest technology-services company, agreed to acquire the digital and data assets of Weather Co., owner of the Weather Channel. Shares gained.
The Armonk, New York-based company did not disclose how much it was paying for the acquisition.
The deal doesn’t include the traditional TV channel business but does include such digital businesses as the website and app, intellectual property, infrastructure and data.
IBM will license weather data to the channel under a long-term contract after the deal closes.
Weather Co is owned by NBCUniversal, a unit of cable company Comcast Corp., and private equity firms The Blackstone Group L.P. and Bain Capital. What remains will be renamed The Weather Channel Television Network.
The Weather Company's data is used by more than 5,000 customers, including airlines, media companies and government agencies. Airlines, for example, use its data to avoid flight turbulence or provide weather updates to pilots. As part of the deal, IBM will also own weather.com.
Shares rose 1.6% to $140.02 at 12:31 p.m. in New York.