In a definitive agreement, IBM will acquire Netezza in a cash transaction at a price of $27 per share or at a net price of approximately $1.7 billion, after adjusting for cash.
IBM aims to integrate with Netezza to strengthen IBM's Information Management software portfolio. The acquisition, which is subject to Netezza shareholders' approval, applicable regulatory clearances and other customary closing conditions, is expected to close in the fourth quarter of 2010.
Steve Mills, Senior Vice-President & Group Executive, IBM Software and Systems, said, "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 strongly complements our business analytics capabilities and client base. Together, we have the opportunity to quickly leverage the technology and accelerate the offering."
The two companies have been strategic partners for many years and are focussed on workload optimized systems that deliver integrated systems, software and storage for analyzing vast amounts of complex data. The existing relationship between IBM and Netezza reinforces the combined value to clients.
"Our vision of an appliance-based intelligent economy aligns very well with IBM's smarter planet strategy. Netezza appliances set the standard for performance and simplicity in data warehousing and analytics," stated Jim Baum, President & CEO, Netezza.
"The addition of Netezza will reinforce IBM's focus in understanding clients' needs by providing them a broader set of analytics capabilities and bringing the power of analytics right into the hands of business users at every level within an organization," commented Arvind Krishna, General Manager, Information Management, IBM.
The acquisition expands IBM's information and analytics offerings, including services available through IBM's Business Analytics and Optimization Consulting organization.
