IBM to acquire Netezza for $1.7 bn

Netezza is a leading player in data warehouse, analytic and monitoring appliances across diverse industries.

In a statement, IBM said it would shell out USD 27 per share for Netezza, valuing the transaction at about USD 1.7 billion.

Both companies have entered into a definitive agreement for the proposed deal, which is expected to be complete in the fourth quarter of 2010.
"The acquisition expands IBM's information and analytics offerings, including services available through IBM's Business Analytics and Optimisation Consulting organisation," the statement said.

In the last four years, IBM has invested over USD 12 billion in 23 analytics-related acquisitions.

IBM and Netezza have been strategic partners, focusing on workload optimised systems that offer integrated systems, software and storage for analysing complex data.
"Netezza strongly complements our business analytics capabilities and client base. Together, we have opportunity to quickly leverage the technology and accelerate the offering," IBM Software and Systems' senior vice president and group executive Steve Mills said.

Once the deal is complete, Netezza, which has around 500 employees worldwide, would be integrated into IBM's Information Management software portfolio.