IBM, on Monday, has inked a deal with Netezza, a data warehouse company in Massachusetts, whereby it will purchase the company for $1.7 billion. The contract terms state that IBM will acquire each share at a price of $27 per share which is a 9.8 percent premium over the price of Netezza’s stock on the close of market on Friday.
“Netezza will expand I.B.M.’s business analytics initiatives to help clients gain faster insights into their business information, with increased performance at a lower cost,” a representative of IBM said.
This buy-out contract is the latest in the recent flush of Information Technology deals, the most prominent of which has been the contract in which Hewlett Packard (HP) made its $2.1 billion winning bid to acquire 3Par after fierce counter competitive bids from Dell.
Netezza, which did its Initial Public Offering (IPO) in 2007, as per a statement, gives “high-performance analytics in a data warehousing appliance that can be up and running in a matter of hours, handling complex analytic queries 10 to 100 times faster than traditional systems.”
“Netezza and IBM are longtime strategic partners (but also competitors), having both focused on workload optimized systems that deliver integrated systems, software and storage for analyzing vast amounts of complex data. Today, Netezza says it designs and develops its appliances on IBM systems technology and IBM software, powering many applications within organizations,” says Robin Wauters on the TechCrunch blog: http://www.techcrunchit.com/2010/09/20/ibm-buys-data-warehousing-appliance-maker-netezza-for-1-7-billion.