MARLBOROUGH, Mass. -- Startup veteran Jit Saxena has done it again. His Netezza Corp. is being acquired by IBM for $1.7 billion. Netezza, a Marlborough-Mass. company that builds high-performance computers for data storage and analysis, has approximately 500 employees and reported $190.6 million in revenue for 2009. The company is traded on the New York Stock Exchange.
IT giant IBM, which is headquartered in Armonk, N.Y., will pay $27 in cash for each share of Netezza.
IBM said Netezza will expand its business analytics initiatives to help clients gain faster insights into their business information, with increased performance at a lower cost.
The acquisition is expected to close in the fourth quarter of 2010.
According to IBM, the acquisition expands IBM’s information and analytics offerings, including services available through IBM’s business analytics and optimization consulting organization. More than 6,000 IBM consultants are dedicated to analytics.
In the last four years, IBM has invested more than $12 billion in 23 analytics related acquisitions. In IBM's second-quarter of 2010, IBM’s analytics business grew 14 percent.
Following the close of the acquisition, IBM intends to integrate Netezza within IBM’s information management software portfolio.
“IBM is bringing analytics to the masses. We continue to evolve our capabilities for systems integration, bringing together optimized hardware and software, in response to increasing demand for technology that delivers true business value. Netezza is a perfect example of this approach,” said Steve Mills, senior vice president and group executive, IBM Software and Systems. “Netezza strongly complements our business analytics capabilities and client base. Together, we have the opportunity to quickly leverage the technology and accelerate the offering.”
Netezza is Saxena’s second public company. He also founded Applix in 1983 and took the company public before he left to start Netezza in 2000. Applix, which was also based in Massachusetts, was a developer of customer relationship management software. Applix was bought by Cognos Inc. in 2007 in a deal worth over $330 million; IBM later bought both companies