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Here’s Why IBM Bought This App Discovery Company

YORKTOWN HEIGHTS, NEW YORK––IBM has created a computer, called Watson, that will play against the bYORKTOWN HEIGHTS, NEW YORK––IBM has created a computer, called Watson, that will play against the b
IBM's Watson supercomputerPhotograph by Carolyn Cole, LA Times via Getty Images

IBM said on Wednesday it will acquire EZSource, an Israel-based application discovery company, to help developers modernize mainframe applications for digital business.

Financial terms of the deal were not disclosed.

IBM (IBM), which has made 13 other acquisitions of Israeli companies since 1998, said the planned purchase is expected to close in the second quarter subject to completion of governmental review.

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It noted that applications can be made up of hundreds of thousands of lines of code and updating the code may take weeks. EZSource, it said, provides a visual dashboard to show developers which applications have changed to ease the modernization process.

EZSource was founded in 2003 and has offices in Israel, the United States, U.K., Switzerland, Japan, and Romania. Its clients include ING Life, Maybank, and 7-Eleven.

IBM’s last acquisition in Israel was Trusteer in 2013, for which it paid more than $600 million.