IBM today announced that it will acquire Micromuse, a developer of network management software in an all-cash transaction valued at $865 million.

Micromuse's products typically keep an eye on network data traffic, but also able to monitor and manage Voice-over-IP (VoIP) and video systems in large-scale environments. IBM said that the acquired products will enable the company to offer solutions for reducing the complexity of IT environments, lowering operational costs, and addressing compliance mandates.

Micromuse's typically are firms in the financial, telecommunications, governments and retail sectors retailers, including America Online, British Telecom, Cox Communications, Deutsche Telecom and eTrade.