IBM and SPSS have entered into a definitive merger agreement wherein IBM would acquire SPSS, a publicly-held company headquartered in Chicago, in an all cash deal.
The transaction has been worked out at a price of $50/share, resulting in a total consideration of approximately $1.2 billion.
The acquisition is expected to expand IBM’s Information on Demand (IOD) software portfolio and business analytics capabilities, including the range of offerings available through IBM’s recently-announced Business Analytics and Optimisation Consulting organisation and network of Analytics Solution Centers.
The acquisition is also expected to strengthen IBM’s Information Agenda initiative, which reportedly helps companies turn information into strategic assets.
IBM said it is expanding its focus on business analytics technology and services to meet clients’ needs in reducing costs and risks, and increase profitability through predictive analytics capabilities. These include advanced data capture, data mining and statistical analysis.
According to IBM, these capabilities help organisations analyse trends and patterns found in historical and current data, predict potential future outcomes and optimise all elements of their businesses, including product and service offerings for customers.
IBM said the acquisition of SPSS will add several analytic capabilities to IBM’s IOD software portfolio such as: customer acquisition and retention for financial services, patient care improvement for the healthcare industry, crime prevention for public sector and ideal store location for retailers and manufacturers.
In addition, software capabilities that address all industries will reportedly include demand forecasting, employee hiring and retention, customer profitability, credit scoring and fraud detection.
The acquisition is subject to SPSS shareholder approval, applicable regulatory clearances and other customary closing conditions. It is expected to be concluded later in the second half of 2009.
