IBM Strikes Billion-Dollar Deal with Netezza

By

IBM’s shopping spree continues with today’s acquisition of analytics firm Netezza for $1.7 billion, or $27 a share. Big Blue has spent $12 billion over the past four years purchasing 23 analytics companies.


In fact, IBM says it plans to spend $20 billion on acquisitions through 2015. Shares of Netezza jumped $3.13, or 13 percent to $27.73. The company’s products fuse data warehousing and analytics to help clients such as Neiman Marcus, Time Warner and Virgin Media deploy analytic applications that scale to remarkable sizes. 
While IBM’s analytics arm grew 14 percent last quarter, competitors such as Hewlett-Packard and Oracle are also attempting to capitalize on the anticipated growth of the data analytics industry with innovative solutions.

Netezza isn’t new to IBM. The company has long been designing and developing its appliances on IBM systems technology. In fact, the two companies have been working together for many years to create workload optimized systems that deliver integrated systems and storage for analyzing vast amounts of complex data.

“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 IBM’s Steve Mills, senior vice president and group executive, in a statement. “Netezza strongly complements our business analytics capabilities and client base. Together, we have the opportunity to quickly leverage the technology and accelerate the offering.”

As news broke of the acquisition, Kendall Law Group, a national securities firm led by a former federal judge, announced that it is investigating Netezza for shareholders in connection with the acquisition. The firm is investigating whether Netezza properly shopped the company prior to entering into the agreement. According to the group, a possible breach of fiduciary duty may have kept the company from reaching a deal that would provide better value for shareholders. 




Edited by Erin Harrison

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More