In an effort to grow its Big Data Platform product suite, IBM (NYSE:IBM) announced today it has signed a definitive agreement to acquire Ireland-based The Now Factory, a customer analytics solutions provider in the rapidly expanding communications industry. The Now Factory marks the seventh software, analytics, or cloud-related acquisition by IBM in 2013. Financial terms were not disclosed.
IBM intends to utilize The Now Factory's solutions for its telecom clients, including expanding its offerings in the rapidly growing mobile communications market, according to the company's statement. IBM cited an Informa Telecoms and Media study that determined by 2016 mobile phone users will use 10 times as much gaming data, eight times more social media content, and 6.5 times more video than they currently do.
Bob PIcciano, the general manager of information management for IBM's Software Group, commented in the press release, "The Now Factory's software enhances IBM's Big Data and Analytics portfolio by improving the speed, development, and implementation of big data solutions, and gives communications service providers the ability to better service their customers."
Revenues from IBM's Software unit, the division The Now Factory will operate in, accounted for $6.4 billion of its $24.9 billion in Q2 2013's total revenues, up 4.1% from the second quarter of 2012. The Software unit represents IBM's only business line that experienced year-over-year revenue growth last quarter.
The deal is subject to customary closing conditions and is expected to be finalized in Q4 of 2013.
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