IBM Makes $1.7B Move for Netezza

The hits keep coming as IBM joins the acquisition game with a $27 a share offer for data management shop Netezza.

Author:
Scott Moritz
Publish date:
Sep 20, 2010 8:37 AM EDT

NEW YORK (

TheStreet

) -- The data networking deals continue as

IBM

(IBM) - Get International Business Machines Corporation Report

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) - Get PAR Technology Corporation Report

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bidding war sparked by

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and

Dell

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. 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

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, 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.>To contact this writer, click here: Scott Moritz, or email: scott.moritz@thestreet.com.To follow Scott on Twitter, go to http://twitter.com/TheStreet_Tech.>To send a tip, email: tips@thestreet.com.