For $1.7 billion, IBM Corp. is acquiring Netezza Corp., a Marlborough, Mass.-based company whose big data “warehouse” machines allow companies to swiftly access large volumes of information needed for business analytics programs.
Some 350 organizations have purchased Netezza systems including Foxwoods Resort Casino in eastern Connecticut, which uses it to better understand patrons and their behavior, with one goal ”“ to identify “faders” who are spending less in order to target them with promotions.
Founded in 2000, Netezza has grown to about 500 employees today. The company”™s largest shareholder is Matrix Partners, a venture capital firm based in Waltham, Mass., which holds a 10 percent stake.
Armonk-based IBM expects the data warehousing market to grow at a 9 percent compound annual rate to nearly $10 billion by the year 2013. In the second quarter, Netezza earned $3.2 million as sales jumped 45 percent to $64 million.
In the last four years, IBM has invested more than $12 billion in 23 analytics-related acquisitions. In the second quarter, IBM”™s analytics business increased 14 percent.
“Every single department from finance to marketing ”¦ is tapping into the capabilities of analytics to draw meaningful insights,” said Arvind Krishna, general manager of information management at IBM, in a prepared statement. “The addition of Netezza will reinforce IBM”™s focus in understanding clients”™ needs by providing them a broader set of analytics capabilities and bringing the power of analytics right into the hands of business users at every level within an organization.”
The companies expect to complete the deal by the end of this year.
