SPSS Pays $44M for NetGenesis
The Chicago maker of data mining software buys the Cambridge, Mass., maker of customer relationship management software in an all stock deal.SPSS, a Chicago, maker of data mining software will NetGenesis ( NASDAQ:NTGX), a Cambridge, Mass., maker of customer relationship management software, in a stock deal worth about $44 million.
"We are making investments that enable us to strengthen and develop our core competencies so that we emerge from this economic downturn as a stronger organization," said Jack Noonan, SPSS president and CEO. "Current market conditions are providing us with unique opportunities to accomplish this."
The deal is expected to close by year's end (pending shareholder and regulatory approval) and brings SPSS a new, more powerful set of online analytical capabilities.
NetGenesis will be integrated into CustomerCentric Solutions (CCS), an SPSS division. The move will transform CCS from a startup division into a mature organization with an established customer base and revenues.
SPSS did not address layoffs but did say it expected to "realize significant synergies'' in the merger.
Shares of NTGX shot up 0.35, or 28 percent, to 1.57 on the news. In the last 52 weeks, the issue has ranged from 0.3 to 6.65. SPSS stock sank 1.46, or 8 percent, to 17.41. It's 52 week high and low are 11.25 and 25.25, respectively.
Reprinted from boston.internet.com