IBM has entered into a definitive agreement to acquire Netezza, a developer of analytics software based in Massachusetts, at a price of $27 per share or approximately $1.7 billion after adjusting for cash. IBM will utilize Netezza to expand its business analytics initiatives and allow clients faster interpretation of business data at a lower cost. The acquisition, subject to Netezza shareholder approval, is expected to close in 4Q 2010.
More than 350 clients in a variety of different industries have adopted Netezza technology, including eHarmony, Time Warner, and Nationwide Insurance. The agreement with Netezza is the latest in a string of 23 analytics-related acquisitions for IBM over the past 4 years.