KDnuggets : News : 2001 : n23 : item18    (previous | next)

Briefs

SPSS to acquire Netgenesis for about $44 M
CAMBRIDGE, Mass. - Oct. 29, 2001- NetGenesis Corp., (NASDAQ: NTGX), a
leading provider of E-Metrics solutions for Global 2000 companies,
today announced that SPSS Inc. (Nasdaq: SPSS), a worldwide provider of
analytical technology, signed a definitive agreement to acquire
NetGenesis. Subject to approval by shareholders and regulatory
agencies, the transaction should conclude during the quarter ending
December 31, 2001. Under the terms of the agreement, SPSS Inc. will
issue approximately 2.4 million shares of common stock to NetGenesis
shareholders, equating to an approximate price per share of $1.80 and
a total $44.6 million valuation.

The acquisition brings together the NetGenesis technology
and expertise for web-centric data analysis with the SPSS data mining
and predictive analytics capabilities for data warehouses, call
centers, and marketing automation systems. The transaction represents
another step in SPSS Inc.'s strategy to build on its core capabilities
while taking a leadership position in the emerging analytic customer
relationship management (aCRM) market.

"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, president and CEO of SPSS
Inc. "Current market conditions are providing us with unique
opportunities to accomplish this objective. Our merger with NetGenesis
is a perfect example. Where before we could only dream of adding
NetGenesis web-oriented capability to our multi-channel analytical CRM
framework, today we are making it a reality."

The combination of SPSS Inc. and NetGenesis technology and expertise
will deliver the first enterprise analytical CRM solution providing
online and offline data analysis with a broad range of predictive
analytics. SPSS Inc. has developed and acquired an extensive set of
highly scalable analytical technologies over its 30-plus year
history. Acquiring NetGenesis expands the company's offerings to
include a new, more powerful set of online analytical
capabilities. The merger brings the best of online and offline data
analysis in one comprehensive offering, from one organization.

NetGenesis provides E-Metrics Solutions through a combination of
software and analytic consulting. E-Metrics are key performance
indicators that combine online behavior with operational metrics to
measure the effectiveness of online initiatives. The NetGenesis
Solution enables organizations to quantify the ROI of complex Web
initiatives - from marketing spending, to site design improvements, to
customer acquisition, conversion and retention. NetGenesis has over
400 enterprise customers, with a significant presence in the financial
services, high technology, telecommunications and media/publishing
vertical markets.

Upon completion of the transaction, NetGenesis will be integrated into
CustomerCentric Solutions (CCS), the SPSS Inc. division devoted to the
delivery of enterprise-wide analytical solutions that help drive
greater value from CRM initiatives. The move will transform CCS from a
start-up division into a mature organization with an established
customer base and revenue stream.

"We expect to realize significant synergies from this relationship,"
said Sue Phelan, president, CustomerCentric Solutions. "SPSS and
NetGenesis already work with common partners, the vertical markets we
target are complementary, and our technologies share a common,
cross-platform, open architecture." CCS and NetGenesis will form a
business that sells an integrated solution for customer-focused
multi-channel analytic CRM.

For more information, see www.netgen.com and www.spss.com

KDnuggets : News : 2001 : n23 : item18    (previous | next)

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