IBM acquisition aims at strengthening analytics offerings

Big Blue will pay $1.7 billion for Netezza

IBM Corp. is buying Netezza Corp., a publicly held provider of high-performance analytics, in a cash transaction for $27 per share or approximately $1.7 billion after adjusting for cash.

Netezza’s data warehousing appliances can be up and running in a matter of hours, handling complex analytic queries 10 to 100 times faster than traditional systems, according to an IBM announcement today.

Acquisition of the Marlborough, Mass., company will expand IBM’s information and analytics offerings, including services available through its Business Analytics and Optimization Consulting, to help clients gain faster insights into their business information, with increased performance at a lower cost, the statement said.

The simplicity, speed and ease of deploying Netezza appliances brings analytics directly into the hands of business users within every department of an organization such as sales, marketing, product development and human resources.

IBM has invested more than $12 billion in 23 analytics related acquisitions in the past four years, the statement said. Its analytics business grew 14 percent in second quarter 2010.

Following the close of the acquisition, IBM intends to integrate Netezza and its approximately 500 employees worldwide into its Information Management software portfolio.

The acquisition, which is subject to Netezza shareholder approval, applicable regulatory clearances and other customary closing conditions, is expected to close in the fourth quarter 2010.

IBM Corp., of Armonk, N.Y., ranks No. 17 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

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