Armonk, N.Y. IBM said Monday it will acquire Marlborough, Mass.-based business analytics company Netezza Corp. for approximately $1.7 billion.
The transaction is expected to close in fourth quarter 2010.
Netezza provides high-performance analytics in a data warehousing appliance that can be up and running in a matter of hours, handling complex analytic queries 10 to 100 times faster than traditional systems, according to the company.
IBM said that Netezza will expand IBM's business analytics initiatives to help clients gain faster insights into their business information, with increased performance at a lower cost.
The two companies already have an existing relationship. Netezza designs and develops its appliances on IBM systems technology and combined with IBM software powers many applications within organizations. The two companies have been strategic partners for many years, focused on workload optimized systems that deliver integrated systems, software and storage for analyzing vast amounts of complex data.
"IBM is bringing analytics to the masses. We continue to evolve our capabilities for systems integration, bringing together optimized hardware and software, in response to increasing demand for technology that delivers true business value. Netezza is a perfect example of this approach," said Steve Mills, senior VP and group executive, IBM Software and Systems.