Technology giant IBM is to acquire DemandTec, a collaborative optimisation network for retailers and consumer products companies, in an all-cash transaction for US$13.20/share, or at a net price of about US$440m, after adjusting for cash.
IBM will extend its Smarter Commerce initiative with the DemandTec acquisition by adding cloud-based price, promotion and other merchandising and marketing analytics to help companies better define the best price points and product mix based on customer buying trends.
DemandTec delivers cloud-based analytics software that enables businesses to examine customer buying scenarios, both online and in-store. As a result, companies can spot trends and shopper insights to make better price, promotion and assortment decisions that increase revenue and profitability.
“IBM Smarter Commerce is redefining how brands buy, market, sell and service their customers in ways that their customers want,” said Craig Hayman, general manager of Industry Solutions at IBM.
“Bringing science to the art of pricing and promotion is a big part of this strategy, and the combination of DemandTec and IBM will help marketing and sales executives in retail and other industries drive more revenue and increase profitability.”
Dan Fishback, president and CEO of DemandTec, said IBM Smarter Commerce is the perfect fit for DemandTec.
“DemandTec has unprecedented capability to improve customers’ price and promotion tactics on a stand-alone basis and connect retailers and manufacturers for collaborative planning through the cloud,” said Fishback.
"IBM is the only provider of price and promotion offerings within a rich solution set that supports companies’ buy, market, sell and service processes.”
IBM will continue to support and enhance DemandTec’s technologies and clients while allowing them to take advantage of the broader IBM portfolio.
DemandTec will be integrated into IBM’s Software Group as part of the acquisition, which is expected to close in the first quarter of 2012.
The deal is subject to DemandTec shareholder approval, applicable regulatory clearances and other customary closing conditions.