IBM, NiSource reach $600 million agreement

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IBM Corp. has reached an approximately $600 million deal with NiSource to continue providing a broad range of IT services to the power distributor.

The seven-year agreement includes the creation and management of a hybrid cloud-computing environment that the companies said would enable NiSource to continue to deliver efficient and reliable service to its customers while improving its performance.

IBM has provided IT services to Merrillville-based NiSource Inc. since 2005. NiSource is the holding company for several natural gas and electricity businesses, including Northern Indiana Public Service Co., or NIPSCO.

With more than 821,000 natural gas customers and 468,000 electric customers across the northern third of Indiana, NIPSCO is the largest natural gas distribution company, and the second largest electric distribution company, in the state.

Shares of Armonk, N.Y.-based IBM fell 31 cents Tuesday afternoon, to $191.97 each. NiSource's stock slipped 10 cents to $35.89.

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