IBM to Acquire DemandTec, Bulk Up E-Commerce Analytics

Written on
Dec 8, 2011 
Brian LaRue  |

ADOTAS – IBM announced today it will acquire data analytics company DemandTec at$13.40 per share — in cash — which adds up to approximately $440 million.

DemandTec is devoted to pricing, merchandising and marketing analytics, and it’s vertically focused in retail. The company has about 450 customers, including heavy-hitters like Target, Unilever and Fresh Direct, and it holds 31 patents. IBM is bulking up its “Smarter Commerce” (a roughly $20 billion market, according to IBM) efforts here: DemandTec’s cloud-based software analyzes in real time both online and in-store purchase scenarios, taking into account factors ranging from competitors’ prices and the customer’s buying history to the weather itself. The company will be integrated into IBM’s Software Group, and this software-as-service acquisition shows IBM jockeying for position in retail software capabilities against SAP and Oracle.

The acquisition will have to go before DemandTec shareholders for approval and pass regulatory clearances, with IBM projecting the actual closing for the first quarter of 2012.Meanwhile, DemandTec is expected to report $91.4 million in revenue for the current fiscal year.



Adotas Senior Editor Brian LaRue has been working in journalism in some form or another for slightly longer than his entire adult life, having won his first SPJ (Society of Professional Journalists) Award while he was still in high school. Prior to joining Adotas, he served as a reporter, editor, columnist, critic and blogger, mostly for a number of daily and weekly newspapers scattered around his native Connecticut. In his off hours, Brian maintains an active parallel life as a musician and music blogger.

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