"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, SPSS president and CEO. "Current market conditions are providing us with unique opportunities to accomplish this."
The deal is expected to close by year's end (pending shareholder and regulatory approval) and brings SPSS a new, more powerful set of online analytical capabilities.
NetGenesis will be integrated into CustomerCentric Solutions (CCS), an SPSS division. The move will transform CCS from a startup division into a mature organization with an established customer base and revenues.
"We share a common vision with SPSS to provide the first enterprise-wide analytical CRM solution suite merging online and offline customer analysis and prediction," said Lawrence Bohn, NetGenesis chairman, president and CEO. "With them we can accomplish things that we could not have done as a stand-alone entity. The acquisition comes very close to being a natural fit."
SPSS did not address layoffs but did say it expected to "realize significant synergies'' in the merger.
Shares of NTGX shot up 0.35, or 28 percent, to 1.57 on the news. In the last 52 weeks, the issue has ranged from 0.3 to 6.65. SPSS stock sank 1.46, or 8 percent, to 17.41. It's 52 week high and low are 11.25 and 25.25, respectively.
Reprinted from boston.internet.com