IBM buys Netezza for $1.7 billion
Trending today is a story about the world's largest computer services provider expanding its analytics technology. IBM has agreed to buy Netezza Corp. for $1.7 billion.
Netezza investors will receive $27 per share cash, 9.8 percent than the Friday, September 17th closing price, IBM said in a statement.
IBM CEO Sam Palmisano said this past spring that they intend to spend about $20 billion on acquistions over the next 5 years, investing in companies which create analytics software which companies can use to predict business trends.
"Larger companies are finding it harder to grow so when they see an interesting technology, they're willing to pay up for it," said Keith Bachman, an analyst at New York's BMO Capital Markets. Bachman cited Hewlett-Packard Co., Dell Inc. and Cisco Systems Inc. as possible counter- bidders.
According to Bloomberg, IBM has spent more than $20 billion on 100 purchases since Palmisano took over in 2002, as he shifts IBM's focus to software and services from hardware. His largest purchase was business-management software maker Cognos Inc. at $5 billion. The Netezza deal will be his sixth purchase of more than $1 billion.