IBM has agreed to buy Chicago-based predictive analytics software and services firm SPSS in a cash deal worth around $1.2 billion.
The companies have entered into a definitive merger agreement that will see Big Blue pay $50 a share, a 42% premium on SPSS's closing price on Monday of $35.09.
SPSS technology helps firms - including banks like Lloyds TSB, Credit Suisse and Rabobank - forecast future trends and spot shifts in consumer patterns or behaviour, assisting with customer acquisition and retention.
IBM says the deal will help expand its Information on Demand software portfolio and business analytics capabilities which will help clients cut costs, reduce risk, and increase profitability through data capture, data mining and statistical analysis.
The technology can also help firms, such as banks, reduce credit risk, increase customer loyalty and detect and prevent fraud, says the vendor.
IBM cites research from IDC estimating that the worldwide market for business analytics software will swell to $25 billion this year, growing four per cent over 2008.
Ambuj Goyal, general manager, information management, IBM, says: "With this acquisition, we are extending our capabilities around a new level of analytics that not only provides clients with greater insight - but true foresight."
The deal is expected to close in the second half, subject to SPSS shareholder approval, applicable regulatory clearances and other customary closing conditions.