IBM buys e-commerce analytics vendor Demandtec for $440 million

The move builds out IBM's Smarter Commerce portfolio

IBM is buying analytics vendor DemandTec for US$440 million in a bid to build out its line of e-commerce software, the companies announced Thursday. The transaction is expected to close in the first quarter of next year.

DemandTec's cloud-based applications are used by retailers to fine-tune pricing strategies and product offerings on an ongoing basis in order to improve business.

The various modules approach this general theme from many perspectives, according to descriptions on DemandTec's website. Some allow companies to determine the best product mix on a local basis by "taking shopper demand, space, productivity, and profitability into account," it states. Another helps determine the best pricing on a given item throughout its lifecycle, while others focus on targeted marketing campaigns.

DemandTec also offers a number of partner-provided services. One of the latest features long-term weather forecasting data from Weather Trends International.

DemandTec's offerings will be rolled into IBM's Smarter Commerce family of products, which also includes the business-to-business data integration technology the company gained through the $1.4 billion acquisition of Sterling Commerce in 2010.

IBM "is redefining how brands buy, market, sell and service their customers in ways that their customers want," said Craig Hayman, general manager of industry solutions, in a statement. "Bringing science to the art of pricing and promotion is a big part of this strategy."

The DemandTec purchase will also give IBM 450 additional customers among some of the world's largest retailers, including Target and Walmart.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuesIBMbusiness intelligencesoftwareapplicationsTargetWalMartdata miningDemandtec

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?