IBM is strengthening its position at the top of the data integration software market with the acquisition of DataMirror.

The IT giant will pay C$170 million ($161m) in cash for the Ontario-based supplier of real-time and batch data integration, master data management and customer data integration tools.

DataMirror, whose flagship customers include Debenhams, B&Q, Imperial Tobacco and Office Depot, has been on something of a roll. In its latest reported quarter (to 30 April), the company reported licence revenue growth of 60%, putting it on target for annual revenues of $56 million in fiscal 2008 revenues, up from $46.5 million in the previous year.

The move galvanises IBM’s powerful position in data integration technology, coming two years after it acquired one of the sector’s leading players, Ascential Software.

DataMirror will become part of IBM’s burgeoning Information Management Software unit.