IBM has finally agreed to purchase DemandTec Inc. for around $440 million. This is on par with the latest trend involving big technology companies that are ready to pay a premium price for those companies offering web-based software.
DemandTec's main product is data analysis software that helps retailers decide how much to charge the retail wares.
The acquisition involves $13.20 per share of DemandTec which is 57 percent premium of their closing price on Wednesday.
The deal will help IBM focus more on providing complex number-crushing apps for helping customers make better business decisions. This acquisition also increases the number of IBM software offered through "cloud," which is the installation of remote data centres that stream information to customers over the computer networks, reports the Wall Street Journal.
General manager of industry solutions at IBM, Craig Hayman, commented that, "DemandTec has unprecedented capability to improve customers' price and promotion tactics."
DemandTec has quite an impressive list of customers that includes Target Corporation and Wal-Mart Stores Inc.