IBM is preparing to acquire Netezza, a company that runs analytics for data warehouse appliances, for $1.7 billion. Under the terms of the all-cash deal, IBM will pay Netezza $27 a share, a 9.8 percent premium over Friday’s closing stock price. IBM is buying the company as it looks to build up its business analytics offerings. The deal requires Netezza shareholder approval, but assuming that goes through, the purchase is expected to close in Q4.
Netezza counts AOL (NYSE: AOL), Amazon (NSDQ: AMZN), CBS Interactive (NYSE: CBS), as well as companies in the ad targeting space such as AppNexus and BlueKai, among its clients. It’s also worked for IBM as well. The promise of “data warehousing analytics” is the ability to synthesize and comprehend vast amounts of information very quickly.
Analytics is a particularly hot area in advertising and marketing in terms of the pace of M&A activity. IBM has certainly done its share of scooping up analytics providers in the general business market. In the last four years, IBM said it has invested more than $12 billion in 23 analytics related purchases. In IBM’s second-quarter of 2010, IBM’s analytics business grew 14 percent. Release