Teradata Muscles Into Cloud Computing With $525 Million Acquisition

Teradata Muscles Into Cloud Computing With $525 Million Acquisition 

The Christmas week saw a major corporate move in the cloud computing space with business data warehousing company Teradata Corp. agreeing to acquire privately held Aprimo, a marketing cloud-computing and software-as-a-service (SaaS) provider in a $525 million deal announced on 22 December.

This marks Texas-based Teradata’s largest acquisition as an independent company, and begins its foray into the cloud computing niche with  bang. Indianapolis-based Aprimo provides analytical software to its enterprise customers that enable them to plan their marketing and advertising efforts.

“The expansion of our business demonstrates our clear commitment to being a world-class provider of business analytics,” said Darryl McDonald, Teradata executive vice president, business development and marketing. The deal will allow companies “to leverage and capitalize on the proliferation of channels and the growing importance of managing and leveraging big data,” he added.

In specific, Teradata will leverage Aprimo to expand its business analytics portfolio to help marketing professionals:

  • Accelerate time to market for revenue-generating campaigns, product launches, and strategic brand initiatives
  • Make smarter decisions across the enterprise by leveraging data to gain strategic insights, recognize emerging opportunities and respond quickly
  • Optimize and deliver successful campaigns seamlessly across all digital channels
  • Streamline operations to drive more effective marketing

“Combining these visionary companies positions Teradata as a leader in Integrated Marketing Management, Marketing Resource Management, and Multi-Channel Campaign Management, providing customers an end-to-end solution available in SaaS and on-premise environments,” said Mike Koehler, President and CEO of Teradata. “In addition, the combination will broaden our addressable customer base and fuel marketing innovation for our customers. Together, Teradata and Aprimo will drive the future of Integrated Marketing Management and offer compelling business value for our customers.”

“Aprimo and Teradata are both laser focused on customer success, core business values that forge together our experience and commitment to help marketers revolutionise marketing and achieve their vision of integrated marketing management,” said Bill Godfrey, CEO of Aprimo. “We believe our combined value proposition, Teradata’s powerful business analytics and Aprimo’s cloud-based Integrated Marketing Software come at a time when marketers are consolidating and integrating their marketing teams and systems while demanding more strategic analytics and intelligence. This is great news for our present and future customers.”

The deal, expected to close in the first quarter of 2011, will be financed using cash on hand and borrowings under an existing credit facility, Teradata revealed. It is is subject to certain adjustments, including debt, proceeds from option and warrant exercises, and closing working capital, totaling about $50 million, Teradata said in a regulatory filing.

In addition to allowing its entry into the hottest computing market currently, this deal is also expected to help Teradata stave off hostile acquisition moves. Teradata’s peers Netezza Inc and 3PAR have already been acquired by the two largest IT service providers out there – IBM and HP – and the Aprimo buy may make it a more difficult acquisition target, analysts opine.

By Sourya Biswas

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