IBM to acquire SPSS for $1.2 billion

ARMONK, N.Y. -- IBM is acquiring analytics-software maker SPSS in an all-cash transaction at $50 per share for a deal valued at about $1.2 billion.

Armonk, N.Y.-based IBM says the acquisition of the Chicago-based company is expected to strengthen IBM's information-agenda initiative, which helps companies turn information into a strategic asset.

SPSS software predicts customer reactions to a wide range of fields, including sales pitches and marketing campaigns. Clients include financial firms, telecommunications companies, government agencies and educational institutions.

Shares of IBM fell 67 cent to $116.96 in premarket trading on Tuesday. SPSS shares jumped 41 percent to $49.59 in premarket trading.