IBM looks to enhance retail presence with DemandTec buy

ARMONK, N.Y. and SAN MATEO, Calif. — IBM announced that it intends to acquire DemandTec for $13.20 per share, or at a net price of approximately $440 million, after adjusting for cash. 

The acquisition of DemandTec, which has approximately 450 customers worldwide in retail, consumer products and other industries, will extend IBM's smarter commerce initiative 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, IBM said. 

“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.” 

Through the agreement, DemandTec will enable companies to use cloud computing services to gain insights about customer merchandising and pricing preferences to better market, sell and deliver the right product at the right place, and at the right price. DemandTec also expands IBM’s  strategy by adding additional, subscription-based offerings to IBM’s software-as-a service solutions portfolio, the company said. 

DemandTec is based in San Mateo, Calif. and has more than 350 employees, with additional offices in Minneapolis, London, Paris, and Bangalore. The acquisition is subject to DemandTec shareholder approval, applicable regulatory clearances and other customary closing conditions. It’s expected to close in the first quarter of 2012.