International Business Machines Corp. (NYSE:IBM) has closed its acquisition of Varicent Software today for an undisclosed amount. Varicent, which provides sales analysis software and enterprise solutions, will be used to compliment the firm’s enterprise solutions and business services sector. The deal was first announced last April 13.
The company has come to rely on enterprise solutions as a key part of their strategy going forward. IBM shed its personal computer business in 2005 and has concentrated on large scale hardware projects and enterprise level business for growth.
Business Analytics has been identified as a key area for growth and the company is not the only one who sees the pattern. Competitor Hewlett Packard Corporation (NYSE:HP) is also moving into the area.
Read the full press release below
ARMONK, N.Y. – 23 May 2012: IBM (NYSE:IBM) today announced it has completed the acquisition of Varicent Software Incorporated, a leading provider of analytics software for compensation and sales performance management. Financial terms will not be disclosed.
Varicent’s software automates and analyzes data across sales, finance, human resources and IT departments to uncover trends and improve sales performance and operations. The acquisition enhances IBM’s Smarter Analytics capabilities across line of business operations in all industries.
“Varicent advances IBM’s efforts to deliver analytics directly into the hands of front line employees, helping them uncover new ways to remain competitive and stay ahead of increasing demand,” said Les Rechan, IBM General Manager, Business Analytics. “The combination of Varicent’s software and IBM’s deep analytics expertise delivers a comprehensive approach to managing sales performance, allowing clients to make more informed decisions faster.”
Varicent software allows companies across a variety of industries including banking, telecommunications, insurance and retail to facilitate and streamline quota planning, compensation, sales assignments and managing quotas and insights into sales activities. The software is unique, taking what is traditionally a very labor intensive process, and automates and integrates all aspects of sales, client and financial performance management across the enterprise.
Varicent software, combined with IBM’s prior acquisitions in business analytics including Algorithmics, Clarity Systems, OpenPages and Cognos, and recent investments in predictive analytics such as SPSS, will provide clients with a broad range of business analytics solutions. These acquisitions are part of IBM’s larger focus on analytics, which spans hardware, software, services and research.
The news supports IBM’s long-term growth strategy to expand the company’s business analytics and optimization software and services capabilities, an area of IBM’s business that is expected to reach $16 billion in revenue by 2015.
Varicent is headquartered in Toronto, Canada with additional operations in North America, EMEA and Asia Pacific. Varicent has more than 180 customers using its software, including Starwood Hotels, Covidien, Dex One, Manpower, Hertz, Office Depot and Farmers. Consistent with its acquisition strategy, IBM will continue to support Varicent clients while allowing them to take advantage of the broader IBM portfolio.
With the closing of this acquisition, approximately 200 Varicent employees will join IBM’s Software Group.