IBM boosts analytics portfolio with SPSS purchase

IBM is paying $1.2bn in cash for SPSS, a company with technology that will bolster its business analytics line-up.

SPSS makes predictive analytics and data-mining software that models customer interactions.

IBM said the deal, which values SPSS at $50 (£30) a share, is expected to close in the second half of the year.

IBM has completed 27 acquisitions for its information-on-demand strategy and more than 100 deals over the last decade overall.

Coupled with the launch of IBM's preconfigured analytics system, the company is signalling that it is serious about making predictive modelling part of every day corporate processes.

SPSS will fit into IBM's information-on-demand software portfolio. SPSS targets a bevy of industries including financial services, healthcare, retail and the public sector. SPSS's software is used to retain customers, detect fraud and analyse risk.

On a conference call, Ambuj Goyal, general manager of IBM's information management business and Jack Noonan, chief executive of SPSS, portrayed the deal as complementary. For SPSS, IBM provides more distribution and services heft. For IBM, SPSS fits into the overall business analytics strategy.

Goyal noted that SPSS and IBM were already partners: SPSS's software was embedded in the IBM Cognos business intelligence applications via an OEM agreement.