IBM to buy Tealeaf Technology

Independent SAP spin-off snapped up.

IBM said it had agreed to buy privately held Tealeaf Technology, a maker of software that helps companies analyse and react faster to customer behaviour.

The companies did not disclose financial details for the deal, which is expected to close in the second quarter of this year.

An IBM spokesman said the company hopes to address company marketing officers with Tealeaf's software and as a result open up new revenue streams.

Tealeaf, which was founded in 1999 and is an independent spin-off of SAP, offers software that improves websites and will be integrated into IBM's software business, IBM said on Wednesday.

For example, IBM said, using Tealeaf software, an online retailer can identify weaknesses in a recent mobile marketing campaign by spotting instances and replaying scenarios that triggered customer sessions to end prematurely.

Based on the findings, the customer's experience can be improved by changing the site design or make it easier to use and in return rekindle consumer interest, IBM said.

Tealeaf is the third acquisition IBM has made to expand what it calls smarter commerce in the past year. It has made six purchases in that area since 2010.

IBM has said that smarter commerce, which is focused on online analytics and automation to help companies tap into consumer behavior and trends, this year has a market value of US$20 billion in software alone.

IBM has invested more than US$3 billion in building its smarter commerce initiative, it said.

(Reporting By Nicola Leske; Editing by Tim Dobbyn)