IBM set to acquire Netezza for US$1.7 billion

After IBM's chief executive weighed in with some very candid thoughts on HP's M&A and innovation investment strategies last week, Big Blue has agreed to acquire Netezza, a leader in data warehousing, analytic and monitoring appliances, for US$27 per share in cash, making the deal worth approximately US$1.7 billion.

The purchase price represents a reasonable 10 per cent premium over Netezza's last closing price of US$24.60. Comparatively, HP paid a 24 per cent and 83 per cent premium in the acquisitions it closed earlier this month.   

Steve Mills is the senior vice president and group executive of IBM's Software and Systems division:

"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. Netezza strongly complements our business analytics capabilities and client base. Together, we have the opportunity to quickly leverage the technology and accelerate the offering."

In the last four years, IBM has invested more than $12 billion in 23 analytics related acquisitions. In IBM's second-quarter of 2010, IBM's analytics business grew 14%.

Following the close of the acquisition in the fourth quarter of 2010, IBM intends to integrate Netezza within IBM's Information Management software portfolio. Netezza has approximately 500 employees around the world.