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; [email protected]