IBM to buy data firm Netezza for $1.7bn

The computing giant, which last year bought predictive analytics provider SPSS for $1bn, said “Netezza will expand IBM’s business analytics initiatives to help clients gain faster insights into their business information, with increased performance at a lower cost”.

The deal is subject to shareholder approval and regulatory clearances, and is expected to close in the fourth quarter of 2010.

The two firms have been strategic partners for years, IBM said, with Netezza using IBM systems and software to provide its data services. Massachusetts-based Netezza has more than 350 clients in a variety of industries.

IBM said it has invested more than $12bn in 23 analytics-related acquisitions in the past four years, and it intends to integrate Netezza with its information management software portfolio.