By Saabira Chaudhuri
International Business Machines Corp. (IBM) has agreed to buy analytics firm Star Analytics Inc.'s software portfolio for an undisclosed amount in a push to expand its business-analytics offerings.
IBM said the deal will allow it to address the growing challenges in gaining a more complete view into varying types of data, which have led companies to look for ways to automate and provide business users with self-service access to information.
It said the Star Analytics software helps companies automatically integrate essential information, reporting applications and business-intelligence tools across their enterprises, on premise or from cloud-computing environments.
A particular benefit of the software is that it removes typical custom coding for specialized sources that are hard to maintain. It also eliminates manual processes that are cumbersome and time-consuming, IBM said.
"IBM sees an enormous opportunity for our clients to apply Star Analytics to the information they have stored in their financial applications," said Leslie J. Rechan, general manager of IBM Business Analytics.
IBM has benefited from its push toward higher-margin software and services that command higher fees and prices, while shedding less-profitable businesses. However, IBM has been pressured by businesses' weak technology spending, a shortfall that has been worsened by economic uncertainty.
Last month, IBM reported its fourth-quarter earnings increased 6.3% as the technology heavyweight's software sales and margins strengthened, though overall revenue declined slightly.
IBM's shares rose 1% to $205.10 in recent trading. The stock has risen 7.1% so far this year.
Write to Saabira Chaudhuri at [email protected]
Corrections & Amplifications
This article was corrected at 06:54 EDT February 4, 2013 to fix the name of the company. It is Star Analytics, not Start Analytics.
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