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IBM to acquire web analytics firm Coremetrics

By SiliconIndia | Tuesday, 15 June 2010, 23:36 Hrs

New York: With an aim to expand its software and services businesses, IBM plans to acquire Coremetrics, provider of Web analytics software. However, the terms of the deal were not disclosed, reports Ritsuko Ando from Reuters.

According to IBM, the latest deal will boost its services portfolio, specifically helping companies understand customers' shopping habits and measure the effectiveness of their marketing campaigns. Coremetrics, with over 200 employees, offers customers like Bank of America, 1-800 Flowers and Victoria's Secret, analysis of social networks and online media, helping them create more effective marketing campaigns.

Steve Mills, IBM's Senior Vice President and software group executive, said a joint company could better address the needs of customers who are increasingly looking to increase their online sales and marketing. "Banking, travel and transportation - these aren't traditional retail but people these days do all those things online," he said.

IBM expects the deal to close in the third quarter of this year, subject to regulatory approvals and the satisfaction of other customary closing conditions. Rivals like Hewlett-Packard Co, Oracle and Dell have also been scouring for deals as they compete to offer a broad set of products and services. Coremetrics' main rival is Omniture, which was bought by Adobe Systems last year. Coremetrics CEO Joe Davis said the deal will help the two companies "deliver deeper business insights to address the real challenges and opportunities all companies face in an increasingly digital world."

IBM, which has bought over 55 companies since 2003, recently announced plans of allocate $20 billion for acquisitions through 2015. IBM bought PwC Consulting from PricewaterhouseCoopers in 2002 and sold its personal computer business to Lenovo Group in 2005.T he company has been focusing recently on acquiring profitable software and business services partners rather than hardware makers. Last month, IBM boosted its effort to expand in the software and services segment by acquiring privately-held software company Cast Iron Systems for an undisclosed amount. The company also said it will buy the B2B (business-to-business) arm of AT&T , Sterling Commerce, for $1.4 billion in an all-cash deal. Shares of Armonk, New York-based IBM closed up 1 percent at $129.79 on the New York Stock Exchange on Tuesday.

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