IBM acquiring software firms SPSS, Ounce Labs

International Business Machines (IBM) today said that it plans to acquire analytics software and solutions company SPSS Inc for about $1.2 billion in cash to expand its information on demand (IOD) software portfolio and business analytics capabilities.

This is the second acquisition announced by Big Blue in one day. Separately, the company announced that it has acquired for an undisclosed sum Massachusetts-based privately-held company Ounce Labs Inc, headquartered at Waltham, whose software helps companies reduce the risks and costs associated with security and compliance concerns.

IBM will pay Chicago-based SPSS $50 a share, a 42-per cent premium to yesterday's closing price of $35.09 on Nasdaq and said that the acquisition is subject to SPSS shareholder approval, applicable regulatory clearances and other customary closing conditions. It is expected to close later in the second half of 2009.

New York-based IBM is expanding its focus on business analytics technology and services to meet growing client needs to cut costs, reduce risk, and increase profitability through predictive analytics capabilities, which include advanced data capture, data mining and statistical analysis.

''These capabilities help organisations analyse trends and patterns found in historical and current data to drive new forms of competitive advantage by predicting potential future outcomes and optimising all elements of their businesses, including product and service offerings for customers,'' the company said.

This acquisition is expected to further expand IMB's IOD software portfolio and business analytics capabilities, including the range of offerings available through IBM's recently-announced business analytics and optimisation consulting organisation and network of Analytics Solution Centers.