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ACI says IBM to take stake, raises buyback

NEW YORK (AP) -- ACI Worldwide, which makes software for electronic payments, says IBM is going to start exercising some warrants in order to take a stake in the company.

IBM, formally known as International Business Machines Corp., received the 2.8 million warrants in 2007. The warrants expire in December.

Shares of IBM, which is based in Armonk, N.Y., gained 59 cents to $206.95 in premarket trading on Friday.

ACI says it plans to use part of the proceeds to pay down debt.

The company also announced that it is going to buy back some more of its stock. ACI says it will repurchase 2.5 million shares worth $113 million. The New York company has bought back 1.43 million shares for the year to date.