IBM and SPSS Inc. have announced they have entered into a definitive merger agreement for IBM to acquire SPSS in an all cash transaction at a price of $50 per share, resulting in a total cash consideration in the merger of approximately $1.2 billion. The acquisition is subject to SPSS shareholder approval, applicable regulatory clearances, and other customary closing conditions. It is expected to close later in the second half of 2009.

This acquisition is expected to expand IBM's Information on Demand software portfolio and business analytics capabilities, including the range of offerings available through IBM's recently announced business analytics and optimization consulting organization and network of analytics solution centers.

IBM is expanding its focus on business analytics technology and services to meet growing client needs to cut costs, reduce risk, and increase profitability through predictive analytics capabilities, which include advanced data capture, data mining, and statistical analysis.