IBM in a press release dated Sept. 20 announced that it has entered into a definitive agreement to acquire Netezza, an analytics provider based in Marlborough, Mass., in a cash transaction at a price of $27 per share or at a net price of approximately $1.7 billion, after adjusting for cash. The acquisition, still subject to shareholder approval and other customary closing conditions, is expected to close in the fourth quarter of 2010.

Netezza is expected to expand IBM's business analytics initiatives to help clients gain faster insights into their business information, with increased performance at a lower cost. IBM and Netezza have been strategic partners for many years focused on workload optimized systems that deliver integrated systems, software and storage for analyzing vast amounts of complex data.

Both IBM and Netezza see the importance of integration from the multiprocessor through middleware to business consulting to bring a higher level of efficiency through workload optimized systems. For example, Netezza appliance capabilities highlight integrated software with unique FPGA-Accelerated Streaming Technology that allows the system to execute analytic queries at streaming speeds of up to milliseconds, significantly improving the performance and response times for critical business decisions.

The acquisition expands IBM's information and analytics offerings, including services available through IBM's Business Analytics and Optimization Consulting organization. Following the close of the acquisition, IBM intends to integrate Netezza within IBM's Information Management software portfolio. Netezza has approximately 500 employees around the world.