NEW YORK ( TheStreet) -- The data networking deals continue as IBM ( IBM) said Monday that it will pay $1.7 billion for Netezza ( NZ).

The deal calls for IBM to pay $27 a share in cash for the data storage management and analytics shop, based in Marlborough, Mass.

The move comes after what has been an active month of deal talks in the wake of the 3Par ( PAR) bidding war sparked by Hewlett-Packard ( HPQ) and Dell ( DELL). Netezza shares have risen 62% in less than a month on speculation that it was being eyed as an acquisition target by one of the tech giants.

The Netezza/IBM deal immediately cooled the excitement around Radware ( RDWR), which was thought to be in the sights of either IBM or HP. Radware shares dropped 2% and Netezza shares surged 12% to 27.55 in premarket trading Monday.

--Written by Scott Moritz in New York.

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