IBM splashes £730m on analytics firm SPSS

IBM has agreed to buy analytics software specialist SPSS for $1.2 billion (£731 million).


IBM has agreed to buy analytics software specialist SPSS for $1.2 billion (£731 million).

The move comes just a month after IBM announced plans to embed SPSS technology in its business intelligence and performance management tools.

SPSS specialises in predictive analytics tools that help companies mine historical business data to identify future trends that they can exploit for greater efficiency or profit.

IBM foresees creating potential applications for SPSS tools, helping financial services companies retain customers, preventing crime and picking the optimal site for a new store or factory.

"With this acquisition, we are extending our capabilities around a new level of analytics that not only provides clients with greater insight - but true foresight," said Ambuj Goyal, general manager information management at IBM.

The buyer is intent on expanding its business analytics capabilities. In May it acquired data discovery technology from Exeros for an undisclosed sum, and in January last year it paid $5 billion for business intelligence software developer Cognos.

It also sees the sector as a rich source of consulting revenue: IBM Global Services recently created a Business Analytics and Optimisation Consulting division which the company expects will make use of products from Exeros and, now, SPSS.

IBM will continue to support and enhance the SPSS products as part of its Information Management software portfolio after the deal closes, it said. The companies expect to close the deal by the end of the year, subject to approval from regulators and SPSS shareholders.

Meanwhile, IBM has also announced that it will acquire Ounce Labs, a Massachusetts maker of source code analysis tools, for an undisclosed sum.

Ounce Labs develops software that analyses the security of other software and suggests ways to improve it. IBM expects to incorporate the company's products into its Rational software quality division.

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