IBM Buying Web Analytics Software Developer


IBM is acquiring Web analytics software developer Coremetrics in a move that will expand IBM’s portfolio of business analysis applications.

IBM did not disclose the financial terms of the acquisition: San Mateo, Calif.-based Coremetrics is privately held. IBM expects to complete the acquisition in the third quarter following regulatory approvals and other customary closing conditions.

Coremetrics’ 230 employees will become IBM employees, according to IBM.

Coremetrics’ customers include Bank of America, Holiday Inn, Office Depot, Petco, Victoria’s Secret and Virgin Atlantic Airways.

Coremetrics' Software-as-a-Service Web analytics and integrated marketing applications help online retailers analyze traffic on their Web sites and tailor offers to individual customers. The vendor’s product set includes applications for e-mail targeting, display ad targeting, search engine bid management and making realtime personalized recommendations.

"With this acquisition, we are extending our capabilities to give clients greater insight about customer behavior and sentiment about products and services, and give true foresight into their future buying patterns," said Craig Hayman, general manager, IBM WebSphere, in a statement.

"Marketing departments can benefit from these capabilities very quickly because we are delivering this in a Software-as-a-Service model. The combination of IBM and Coremetrics will maximize marketing expenditures and also make the buying experience more convenient, personal and interactive for consumers,” Hayman said.

Coremetrics will be managed within IBM’s WebSphere software organization. Hayman, in a phone briefing, said Coremetrics could be integrated with the WebSphere Commerce and WebSphere Portal software, as well as with the multi-channel fulfillment applications IBM is in the process of obtaining through its pending acquisition of Sterling Commerce for $1.4 billion.

WebSphere also includes software frameworks for such vertical industries as financial services, retail and healthcare, and Hayman said Coremetrics would fit with those as well. “It is our intention that Coremetrics will become a part of those frameworks,” he said on the call.

IBM has invested $11 billion in the past five years to build out its portfolio of business analytics software and services, and expand its information analysis offerings. The company has acquired 18 companies, including Cognos and SPSS, and has 5,000 services consultants within its Business Analytics and Optimization Consulting organization.

Altogether, IBM has bought 57 software companies for around $13 billion since 2003.