IBM will buy analytics and information forecaster SPSS for $1.2 billion in cash, the companies said Tuesday.
IBM is paying $50 per share for the publicly traded company, which closed Monday on Nasdaq at $35.09. At 6:45 a.m. PDT, the stock had jumped to $49.16.
Chicago-based SPSS makes predictive-analytics software and solutions. Its products tap into vast amounts of customer information that companies can use to try to stay competitive.
Predictive-analytics software is used to gather opinions from customers, forecast future demand, and package the information into business analytics. By capturing and analyzing trends, the software tries to help companies develop products and services better targeted to their customers.
Big Blue has already tapped into the market for predictive-analytics software with its Information on Demand services and its new Business Analytics and Optimization Consulting operation.
IBM said it believes SPSS will provide new solutions for specific industries, such as customer acquisition for financial service companies, patient care for the health care industry, crime prevention for the public sector, and ideal store location for retailers.
"With this acquisition, we are extending our capabilities around a new level of analytics that not only provides clients with greater insight--but true foresight," said Ambuj Goyal, general manager of IBM's Information Management. "Predictive analytics can help clients move beyond the 'sense and respond' mode, which can leave blind spots for strategic information in today's fast-paced environment--to 'predict and act' for improved business outcomes."
Subject to approval from SPSS investors, the deal is expected to close in the second half of 2009. Following the acquisition, IBM will integrate SPSS into its Information Management software portfolio.
The SPSS buyout is just the latest move in Big Blue's drive to win a greater share of the business analytics market. In May, IBM picked up data analytics firm Exeros.
The financial markets may be in turmoil, but business goes on. How exactly it's going on is a central theme at the Gartner Symposium ITxpo in Florida this week, as ZDNet Editor in Chief of ZDNet Larry Dignan reports
Analysts have already explained why they think the Internet is radically altering the economics of the media landscape. Now, Gartner's Mark Stahlman and Michael McGuire say in a "maverick" presentation, healthcare and the financial services industry could well be next.
It's a point well taken, Dignan says, but--
It's a bit of a stretch. Both financial services and healthcare are regulated and it's not like some startup can just walk in and blow up business models. Meanwhile, it's unclear whether digital natives can push things along. Those young folks are healthy so they're not looking to change health care per se and they are broke so who cares about financial services......The big question is timing-it will take a long time to overcome hurdles. But let's hope financial services and health care gets upended by the Net. Both could use a revolution.
One thing is certain, ZDNet's Larry Dignan writes: Your CEO's sleepless nights are likely to impact the technology department sooner rather than later.
(Credit: Gartner)Meanwhile, all this panic over the markets could see CEOs freaking out, and technology departments will be whipsawed as they try to keep up with new and occasionally conflicting demands.
(Gartner analyst Jorge) Lopez argues that CIOs have to be ready to "clear the table" of current plans and start over. CIOs will also have to deliver cost savings, lay off folks and cancel projects. These items will be replaced by projects surrounding acquisitions and divestitures and speedier high risk projects.
Not surprisingly, in light of the ongoing economic mess, Gartner has revised its 2009 IT budget predictions, and the picture isn't quite as dire as you may think. Why? IT folks have been through this before, and not so long ago.
For more on the Gartner conference, check out ZDNet's full coverage here.
Click here for ongoing coverage from CNET News, "Tough times for tech"
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