International Business Machines Corp. (IBM) agreed to acquire
Varicent Software Inc. as the computing giant continues its push
into business analytics and other high-margin businesses.
The terms of the deal, which is expected to close in the second
quarter, weren't disclosed.
Varicent, a private company founded in 2003, provides software
that analyzes compensation and sales performance. Its clients
includes banks, insurance companies and retailers.
The deal comes amid IBM's push to expand into complex,
high-margin areas like business analytics. The company expects a
bottom-line boost from its software and services businesses this
year, while trying to edge away from crowded fields where price
competition can be steep.
The new software will be combined with IBM's other offerings
delivered through cloud computing or on premise.
"For the thousands of sales organizations still relying on silos
of data, spreadsheets and e-mail to manage sales, there is an
enormous opportunity to apply analytics to this vital area of
business and uncover new, untapped growth opportunities." said Les
Rechan, general manager of business analytics at IBM.
All of Varicent's employees are expected to join IBM's software
group.
Shares were down 82 cents to $204.50 in premarket trading. The
stock is up 12% so far this year.
-By Kristin Jones, Dow Jones Newswires; 212-416-2208;
kristin.jones@dowjones.com