IBM plans to buy technology services company SPSS Inc for about $1.2 billion in cash, the companies said on Tuesday.
SPSS shareholders will receive $50 a share, a 42% premium to Monday's closing price of $35.09 on Nasdaq.
Chicago-based SPSS provides predictive analytics software and services. Predictive analytics are used by companies to forecast future trends and spot shifts in consumer patterns, helping them control costs and use resources more wisely.
IBM said the deal will help expand its Information on Demand software portfolio and business analytics capabilities.
Shares of SPSS jumped 41 per cent in premarket trade to about $49.50. The shares had already enjoyed a gain of about 30 per cent this year.
The deal values SPSS at about 25 times analysts' estimated 2010 earnings per share, and the $50 per share price represents an all-time high for the stock, topping its previous all-time top of $47.87.
The deal is subject to SPSS shareholder approval and regulatory clearances, and is expected to close later in the second half of 2009, the companies said.
Separately, IBM said it has acquired closely-held Ounce Labs Inc, whose software helps companies reduce the risks and costs associated with security and compliance concerns. Financial terms were not disclosed.
Back in May, IBM's chief financial officer, Mark Loughridge, told the Reuters Technology Summit that the valuations of potential acquisition targets were attractive. IBM has spent $20 billion buying more than 100 companies since 2000, paying prices that range from as little as $50 million to as much as $5 billion.
Agencies
Showing posts with label Chicago. Show all posts
Showing posts with label Chicago. Show all posts
Wednesday, July 29, 2009
Friday, June 12, 2009
Two Web startups interest AOL
Internet pioneer AOL, which Time Warner plans to spin off into an independent company later this year, announced on Thursday that it had bought two small Web startups focused on local content.
AOL, in a statement, said it had purchased Patch Media Corp., a local news and information platform for local communities, and Going Inc., a platform for sharing information about events in major cities.
Financial terms of the deals were not disclosed.
"Local remains one of the most disaggregated experiences on the Web today -- there's a lot of information out there but simply no way for consumers to find it quickly and easily," said Tim Armstrong, who was hired away from Google this year to become AOL chairman and chief executive.
"It's a space that's prime for innovation and an area where AOL has a significant audience and a valuable mapping service in MapQuest," he said.
"Going forward, local will be a core area of focus and investment for AOL," Armstrong said. "The acquisitions of Patch and Going will help us build out our local network further."
Patch.com is currently available in five local communities in the United States and expects to be available in a dozen by the end of the year.
Going.com provides information for young people about what is going on in major US cities such as New York, Los Angeles, Chicago, Miami and Boston.
"By joining with AOL, we have the opportunity to greatly expand the reach of our platform to more cities both in the US and around the world," said Going chief executive Evan Schumacher.
AOL is currently the number four gateway to the Web after Google, Microsoft sites and Yahoo! and has been trying to refashion itself recently as a popular one-stop portal.
Agencies
AOL, in a statement, said it had purchased Patch Media Corp., a local news and information platform for local communities, and Going Inc., a platform for sharing information about events in major cities.
Financial terms of the deals were not disclosed.
"Local remains one of the most disaggregated experiences on the Web today -- there's a lot of information out there but simply no way for consumers to find it quickly and easily," said Tim Armstrong, who was hired away from Google this year to become AOL chairman and chief executive.
"It's a space that's prime for innovation and an area where AOL has a significant audience and a valuable mapping service in MapQuest," he said.
"Going forward, local will be a core area of focus and investment for AOL," Armstrong said. "The acquisitions of Patch and Going will help us build out our local network further."
Patch.com is currently available in five local communities in the United States and expects to be available in a dozen by the end of the year.
Going.com provides information for young people about what is going on in major US cities such as New York, Los Angeles, Chicago, Miami and Boston.
"By joining with AOL, we have the opportunity to greatly expand the reach of our platform to more cities both in the US and around the world," said Going chief executive Evan Schumacher.
AOL is currently the number four gateway to the Web after Google, Microsoft sites and Yahoo! and has been trying to refashion itself recently as a popular one-stop portal.
Agencies
Saturday, March 7, 2009
Motorola ex-CFO sues for firing him
Motorola Inc's former chief financial officer (CFO) has sued the company for firing him, claiming that it was a "retaliatory discharge."
Paul Liska sued the maker of telecommunications equipment in county court in Chicago on February 20, a day after he was fired. The suit is under seal, and no further details were available. Liska did not return calls for comment, and the company did not return an email.
A "retaliatory discharge" usually refers to an employee being fired for doing something that's in the public interest, like being a whistleblower.
Schaumburg, Ill.-based Motorola said in early February that Liska was leaving after less than a year of service. It didn't specify a cause, but Chief Executive Greg Brown implied on a conference call that it was connected to the delayed spin-off of the company's cellphone unit. Liska, a former partner at private equity companies, was seen as a restructuring expert.
However, Motorola revealed in a filing this week that it had terminated Liska "for cause," depriving him of his signing bonus, stock options and severance payment. It didn't specify the cause.
The Wall Street Journal quoted Liska as saying he had been told he been terminated on January 29 without cause. There was no explanation for the discrepancy in dates on when Liska was terminated.
Agencies
Paul Liska sued the maker of telecommunications equipment in county court in Chicago on February 20, a day after he was fired. The suit is under seal, and no further details were available. Liska did not return calls for comment, and the company did not return an email.
A "retaliatory discharge" usually refers to an employee being fired for doing something that's in the public interest, like being a whistleblower.
Schaumburg, Ill.-based Motorola said in early February that Liska was leaving after less than a year of service. It didn't specify a cause, but Chief Executive Greg Brown implied on a conference call that it was connected to the delayed spin-off of the company's cellphone unit. Liska, a former partner at private equity companies, was seen as a restructuring expert.
However, Motorola revealed in a filing this week that it had terminated Liska "for cause," depriving him of his signing bonus, stock options and severance payment. It didn't specify the cause.
The Wall Street Journal quoted Liska as saying he had been told he been terminated on January 29 without cause. There was no explanation for the discrepancy in dates on when Liska was terminated.
Agencies
Saturday, January 10, 2009
As airline demand falls Boeing likely to axe 4,500 jobs
Boeing Co., the world's second-largest airplane maker, is planning to cut about 3 percent of its work force as jetliner demand falls, hurt by the global economic downturn.
The Chicago-based company on Friday said it expects to cut about 4,500 positions from its passenger jet business, which has factories in the Seattle area. Many of the cuts will be in areas not directly associated with aircraft production.
The news comes a day after Boeing reported a 15 percent decline in passenger jet deliveries for 2008, when it faced an eight-week strike by union workers and shrinking airline demand. The lower deliveries ensured Boeing's archrival, Europe's Airbus, retained its rank as the world's top plane maker.
Orders for Boeing planes, meanwhile, plunged by more than half last year, following three straight years of exceptionally strong bookings, a grim reminder that carriers have been scaling back spending since the summer to cope with fewer air travelers.
Most of the job cuts announced Friday are expected to occur in Washington state in the second quarter of the year, the company said. Boeing says employees will receive 60-day notices starting in late February.
"We have made significant strides in recent years to achieve greater efficiency and productivity, but we still face challenges that we must address," Scott Carson, president and chief executive of Boeing's commercial airplanes division, said in a statement.
Boeing said the cuts will enable it to continue focusing on development programs, airplane deliveries, productivity improvements and quality, as well as customer support.
The company said this year's cuts will eliminate roughly the number of positions added to its commercial aircraft operation in 2008, lowering the total number to 63,500. Boeing employed a total of 162,191 people as of Dec. 31.
Agencies
The Chicago-based company on Friday said it expects to cut about 4,500 positions from its passenger jet business, which has factories in the Seattle area. Many of the cuts will be in areas not directly associated with aircraft production.
The news comes a day after Boeing reported a 15 percent decline in passenger jet deliveries for 2008, when it faced an eight-week strike by union workers and shrinking airline demand. The lower deliveries ensured Boeing's archrival, Europe's Airbus, retained its rank as the world's top plane maker.
Orders for Boeing planes, meanwhile, plunged by more than half last year, following three straight years of exceptionally strong bookings, a grim reminder that carriers have been scaling back spending since the summer to cope with fewer air travelers.
Most of the job cuts announced Friday are expected to occur in Washington state in the second quarter of the year, the company said. Boeing says employees will receive 60-day notices starting in late February.
"We have made significant strides in recent years to achieve greater efficiency and productivity, but we still face challenges that we must address," Scott Carson, president and chief executive of Boeing's commercial airplanes division, said in a statement.
Boeing said the cuts will enable it to continue focusing on development programs, airplane deliveries, productivity improvements and quality, as well as customer support.
The company said this year's cuts will eliminate roughly the number of positions added to its commercial aircraft operation in 2008, lowering the total number to 63,500. Boeing employed a total of 162,191 people as of Dec. 31.
Agencies
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