IBM has acquired data analytics company Netezza for $1.7 billion, paying out $27 per share. Netezza provides high-performance analytics in data warehousing appliances, which streamline many aspects of business by providing fast and efficient access to necessary information. The move marks IBM’s 23rd acquisition in the last four years.
It seems that IBM is betting on analytics technology in order to grow. Analytics in this instance allows a business to improve by making it easy to compare data from past activities. This makes it easier to figure out what moves to make for success in the future. Netezza is also one of Oracle’s main competitors. Analytics is big business according to the numbers. IBM estimates the current analytics market at $100 billion and Netezza more than doubled their stock this year. The deal makes perfect sense for IBM.
“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, senior vice president and group executive, IBM Software and Systems. “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 deal also makes sense for Netezza. While things are looking good, they still have the likes of Oracle to worry about. IBM could be a valuable partner in this regard. The data market is shrinking, with larger companies like IBM, Dell, and HP buying out the smaller ones. IBM and Netezza have already been “strategic partners for many years.” The deal is set to close in the fourth quarter, which does leave the door open for a competitor to step in with a higher offer. This may be unlikely given their existing relationship, though.
“Our customers choose our appliances for their fast time to value and how they simplify analytics against big data,” said Netezza President and CEO Jim Baum in a joint statement. “Together with IBM, we are looking forward to extending our capabilities to a much broader market.”
If the deal does close, Teradata will be left competing against IBM and Oracle, so it may also become an acquisition target. The buyer? HP, who still has no answer for IBM’s Exadata.
via ZDNet, CNN Money, SiliconAngle