DemandTec will extend IBM’s Smarter Commerce initiative
IBM has signed a definitive agreement with DemandTec for IBM to acquire DemandTec in an all cash transaction.
Under the acquisition, DemandTec will extend IBM’s Smarter Commerce initiative by adding cloud-based price, promotion and other merchandising and marketing analytics to help companies better define the best price points and product mix based on customer buying trends.
DemandTec delivers cloud-based analytics software that enables businesses to examine different customer buying scenarios, both online and in-store, so that companies can spot trends and shopper insights to make better price, promotion and assortment decisions that increase revenue and profitability.
IBM will continue to support and enhance DemandTec’s technologies and clients while allowing them to take advantage of the broader IBM portfolio and DemandTec will be integrated into IBM’s Software Group, which is a key driver of growth and profitability for IBM.
IBM Industry Solutions general manager Craig Hayman said IBM Smarter Commerce is redefining how brands buy, market, sell and service their customers in ways that their customers want.
"Bringing science to the art of pricing and promotion is a big part of this strategy, and the combination of DemandTec and IBM will help marketing and sales executives in retail and other industries drive more revenue and increase profitability," said Hayman.
DemandTec president and chief executive officer Dan Fishback said DemandTec has unprecedented capability to improve customers’ price and promotion tactics on a stand-alone basis and connect retailers and manufacturers for collaborative planning through the cloud.
"IBM is the only provider of price and promotion offerings within a rich solution set that supports companies’ buy, market, sell and service processes," said Fishback.