BriefsSPSS to acquire Netgenesis for about $44 MCAMBRIDGE, 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 |
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