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”.
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.
(The Wall Street Journal)