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IBM Set To Acquire Statistics Company SPSS

International Business Machine Corp. (IBM) has announced its plans to snap-up SPSS Inc., a Chicago-based firm specialises in developing software to help businesses figure out upcoming trends along with shifts in consumer patterns, for a massive $1.2 billion.

The Big Blue notified that the takeover of SPSS for around $50 per share will surely bolster up its business-analytics technology, which can further be employed to help minimise credit risk, enhance customer loyalty, and diagnose and check frauds performed across different industries.

The deal valued SPSS at 42 percent higher than its closing prices on July 27, and as much as 2.6 times higher than the company’s expected sales for this year.

SPSS is known worldwide for creating predictive software that helps forecasting customers’ reactions, including marketing drives and sales pitches. The company has a diverse client-base, which includes financial companies, telecom firms, educational institutions as well as government agencies.

The deal marks end of an era for Chicago, which was once considered as the hub for business software developers, as SPSS was the last major software firm based in the region.

Jack Noonan, chief exec for SPSS, said in a statement, “We're excited about this agreement and the positive prospects that SPSS and IBM can achieve together in continuing to lead an industry that we helped shape”.

Our Comments

The other data-crunching company that was in the news lately was Wolfram Alpha, the company behind Mathematica, which launched that search engine which was supposed to challenge Google but ended being nothing more than an interesting factoid.

Related Links

IBM in $1.2bn deal for SPSS

(Financial Times)

Monster Merger: IBM Buys SPSS For Approx. $1.2 Billion In Cash Deal

(Washington Post)

IBM's purchase of SPSS ends era

(Chicago Tribune)

IBM Deal Could Spark M&A

(Business Week)

IBM, With SPSS Buy, Shows Why Data Management Is A Draw

(The Wall Street Journal)

IBM to acquire SPSS for $1.2B

(Associated Press)

Désiré Athow
Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.