IBM is acquiring Netezza at $27 per share, or $1.7 billion, adjusting for cash. This is a 13 percent premium, which is fairly anemic in today’s world of M&A. Especially in light of the recent 3PAR free-for-all, where HP finally bested Dell in the bidding war. To contrast, 3PAR was trading at $10 per share, with a bid at $17, which went to $20, which went to $24, which ended up at $27 per share.
Netezza is a leading provider of high-performance analytics in data warehousing appliance. In other words, Netezza is a database machine with fancy analytics for consumer forecasting. And todays world is all about analytics.
The transaction is nice news for the East Coast, which has always been behind in numbers in the technology acquisitions game. The three largest institutional owners are Wellington Management, Matrix VI Management and Columbus Circle Investors. Ed Zander, who is on the board, is also a substantial owner.