This week Teradata agreed to acquire privately held Aprimo, a provider of cloud-based marketing automation applications, for $525M in cash. Teradata says the purchase will accelerate its revenue growth, since Aprimo has been growing at about 20% per year.
However, in view of Aprimo’s small relative size and subscription revenue model, this may take some time. Marketing departments are often an entry point for Teradata and Aprimo’s applications may raise Teradata’s profile as it seeks new enterprise clients.
The deal also comes at the end of a year where IBM made several notable acquisitions of analytics firms, most with large customer bases among marketing professionals, including CoreMetrics, Netezzza and Unica. Gartner values the integrated marketing management sector at $5 billion per year and growing and this is a space that Teradata did not want to miss out on.