IBM to buy Netezza for $1.7 BILLION in cash

By Chris Nuttall in San Francisco
Published: September 20 2010 19:09 |
Last updated: September 20 2010 19:09

IBM on Monday announced an agreement to buy Massachusetts-based Netezza Corporation for $1.7bn in cash, in a deal which adds to recent deal-making momentum in business software and services.

An acquisition by the US technology group of the data warehousing and business analytics company would follow Hewlett-Packard’s victory over Dell this month in the battle to acquire storage technology company 3Par for $2.4bn.

EDITOR’S CHOICE
Oracle earnings soothe fears for tech sector - Sep-17.Tech groups in talks on antitrust probe - Sep-18.FT Tech blog - Aug-08.Ex-IBM executive jailed in Galleon case - Sep-13.Hurd set for $11m pay deal at Oracle - Sep-08..There was no immediate sign of a rival to IBM’s bid, but analysts would not rule one out as Netezza’s share price climbed 13 per cent to $27.80 in midday trading on Monday, above IBM’s offer of $27 a share.

“Someone could swoop in at the eleventh hour and try to outbid IBM,â€