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ARMONK, N.Y. -- IBM will acquire cloud-based analytics software provider, DemandTec, for about $440 million in cash.
The Armonk, N.Y.-based technology company said this acquisition will extend its Smarter Commerce initiative by adding cloud-based price, promotion and other merchandising and marketing analytics to help retailers better define the best price points and product mix based on customer buying trends.
More specifically, retailers who use DemandTec software examine customer buying scenarios, both online and in-store, allowing a dealer to gain a quick and accurate analysis of consumer trends, leading to better decision-making, IBM said in a news release.
"IBM Smarter Commerce is redefining how brands buy, market, sell and service their customers in ways that their customers want," stated 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."
Dan Fishback, president and CEO of San Mateo, Calif.-based DemandTec, said IBM Smarter Commerce is a perfect fit for his company. "IBM is the only provider of price and promotion offerings within a rich solution set that supports companies' buy, market, sell and service processes," he said.
DemandTec serves 450 clients worldwide, including several convenience stores and quick-service restaurants.
IBM launched its Smarter Commerce initiative in March.