IBM Acquires Netezza in $1.7 Billion Deal
Under the cash deal, IBM (IBM) will pay Netezza shareholders $27 per share, a 9.75% premium over the stock's Friday close. Netezza's stock soared 10.7% in premarket trading to $27.23 a share.
Technology titans like corporate software giant SAP (SAP) and others have been snapping up companies that develop business intelligence software. The growth in that sector comes as American corporations find themselves holding more information within their computers and data centers, and they want better ways to sort through all that data to find trends, relationships and other useful information that will help them make sales, strike deals and pursue the best strategic plans.
"IBM is bringing analytics to the masses. We continue to evolve our capabilities for systems integration, bringing together optimized hardware and software, in response to increasing demand for technology that delivers true business value. Netezza is a perfect example of this approach," said Steve Mills, IBM Software and Systems senior vice president and group executive, in a statement.