THE ASIA-PACIFIC CENTRE FOR RESEARCH, INC.

home > articles >

SPSS Inc. Acquires DataDistilleries
Source: www.spss.com
Copyright SPSS, Inc. 2004

CHICAGO, 11/05/03 — SPSS Inc. (NASDAQ: SPSS), the leading provider of predictive analytics technology and services, today announced the acquisition of DataDistilleries, a Netherlands-based developer of analytic applications. This transaction unites the powerful technology and worldwide distribution capabilities of SPSS with the proven business solutions of DataDistilleries.

"SPSS has demonstrated success providing predictive analytics capabilities to research analysts in the form of data mining and statistical tools," said Jack Noonan, SPSS Inc. president and chief executive officer. "Our growth strategy also includes the delivery of these capabilities to business users in the form of targeted packaged applications. By acquiring the significant applications technology and expertise of DataDistilleries, we are accelerating our efforts in pursuit of this compelling market opportunity."

DataDistilleries develops analytic applications that enhance the effectiveness of direct marketing campaigns, fraud detection activities, call centers, branch locations and Web sites. The company's offerings deliver predictions and recommendations in real time to customer-facing business users, driving actions that reduce marketing costs, increase cross-selling revenues, improve customer retention rates and reduce fraud or credit risks.

Originally part of the Dutch National Research Center for Mathematics and Computer Science (CWI), DataDistilleries was incorporated in 1995 and steadily established a leading position in the European market for analytical CRM (aCRM) software. In the past twelve months, the company generated revenues of approximately $4.5 million, of which 90 percent were from sales in the Netherlands. DataDistilleries currently employs 40 professionals and has 26 licensed customers, including ABN AMRO, Achmea, ING Group, Rabobank, Saga and Vodafone. Additional information about DataDistilleries can be found at www.datadistilleries.com.

"Organizations demand real-time analytic applications that combine sophisticated predictive capabilities with scalability and ease of use," said Aaron Zornes, META Group, Inc. "To meet this demand, vendors must develop a solid application architecture with embedded advanced analytics."

Noonan reinforced this perspective, saying, "Our goal is to close the gap between customer data and business users by providing valuable analytic insights that are usable by front-line personnel. In short, SPSS predictive analytic applications will deliver the right decisions, to the right people, at the right time and in the right place."

The parties signed a stock purchase agreement in which SPSS acquired all outstanding capital stock of DataDistilleries for approximately $6.4 million. This consideration includes $1.0 million in cash and 281,830 shares of SPSS common stock valued at $5.4 million for purposes of this transaction. Over the next two years, the shareholders of DataDistilleries can also receive additional cash payments totaling $4.1 million at current approximate exchange rates, contingent on the achievement of certain growth targets for license and maintenance revenues from the DataDistilleries applications. Additional information on this transaction will be available in the Form 8-K to be filed by SPSS with the United States Securities and Exchange Commission.

The analytic applications developed by DataDistilleries integrate with operational CRM solutions from vendors such as Siebel Systems, Oracle Corporation and PeopleSoft to identify valuable, actionable opportunities for companies and their customers. These offerings are licensed as business solutions that include software, implementation services and training. The applications will be sold by the SPSS field sales force, which now includes existing DataDistilleries sales personnel. The analytical power of the DataDistilleries applications will be enhanced with the extensive capabilities of SPSS in data and text mining, market research and Web and marketing analytics.

"This combination with SPSS offers significant benefits to the growing DataDistilleries customer base, providing an even more comprehensive analytic offering," said Pieter Varkevisser, chief executive officer of DataDistilleries. "We are looking forward to rapidly integrating our proven capabilities in building and deploying front-line analytic applications with the extensive technology, customer support and global sales distribution of SPSS."