IBM buys analytics firm Netezza for $1.7b

Robert Clark
21 Sep 2010
00:00
News
Daily News

In yet another deal in the data warehousing sector, IBM is to buy analytics outfit Netezza in a deal worth $1.7 billion.

IBM has offered $27 a share for the Massachusetts-based firm, which makes an appliance that offers high-performance analytics.

The deal comes a month after HP outlasted Dell in a bidding war for another data storage firm, 3Par.

Many investors are betting on a rival bid for Netezza, pushing the company’s share price up to $28.47, 5% above IBM’s offer, analysts said.

Netezza’s Nasdaq stock, which rose 15% in Monday’s trading, has almost doubled since the 3Par takeover battle began a month ago.

Netezza would have to pay IBM $56 million if it terminates the deal, FT.com reported. 3Par paid Dell a $72 million fee last month in order to accept HP’s final offer.

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