SPSS Offers to Buy NetGenesis for $44.6M

Share this article:
Data analysis firm SPSS Inc. has agreed to buy its once-high-flying peer in the online field, NetGenesis Corp., for $44.6 million.


The acquisition is meant to combine Cambridge, MA-based NetGenesis' technology for Internet-based data analysis with SPSS's data mining and predictive analytics for call centers, marketing automation systems and data warehouses.


This deal also is intended to strengthen Chicago-based SPSS's presence in the analytic customer relationship management area.


"Along with its obvious strategic benefits, the NetGenesis acquisition should add between $15 [million] and $20 million in revenues in 2002 and be accretive to earnings by 2003," Edward Hamburg, executive vice president and chief financial officer of SPSS, said in a statement.


"Our balance sheet will also strengthen with the addition of about $30 million in cash," he said. "We certainly have a formidable task of identifying the cost savings required to make this acquisition successful, but there are significant synergies between the companies with which to work."


NetGenesis's technology allows marketers to quantify the return on investment of online efforts like site design upgrades, marketing spending and customer acquisition, conversion and retention.


NetGenesis's 400 clients include Sun Microsystems, General Electric Co., Verizon, Time, Charles Schwab, Fidelity Investments, British Telecommunications and DoubleClick.


Awaiting approval from shareholders and regulatory agencies, the NetGenesis acquisition is expected to close this fourth quarter.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

IAB Tech Lab to Set Global Digital Marketing Standards

IAB Tech Lab to Set Global Digital Marketing ...

In looking to solve complex tech issues, the association opens up full membership to agencies and solutions providers.

Integration Meets Innovation in Planters' Digital Campaign

Integration Meets Innovation in Planters' Digital Campaign

The snacks brand found a healthy way to navigate today's world of digital marketing saturation.

USA Today Decides to Play Games for Real

USA Today Decides to Play Games for Real

It partners with game-maker Arkadium to add 60 new digital games to its site, offering advertisers more segmented breakdowns of players.