International Business Machines Corp. (IBM) agreed Friday to acquire marketing software company Unica Corp. (UNCA) for about $480 million, a move the technology giant says will help customers create better-targeted marketing campaigns.

IBM Industry Solutions General Manager Craig Hayman said IBM has been looking to expand its marketing offerings and identified Unica as the best option, offering $21 a share to Unica holders. That price is more than double Thursday's closing price and the highest level the stock has ever seen. IBM shares were down slightly, 0.4% to $127.78, in midday trading.

IBM's focus has been shifting to higher-margin software business to keep profit growing, and this deal is the latest in a rash of software company acquisitions over the past five years, totaling more than $11 billion. The company this month also purchased data management company Datacap and finalized its acquisition of analytics software firm Coremetrics.

IBM already uses Unica's services and shares a number of clients, including Nordstrom Inc. (JWN) and Best Buy Co. (BBY), Hayman said, adding that Unica's ability to provide both Web analytics and marketing software as a package service fit well in IBM's strategy.

"There was one clear leader in the space, and it was Unica," he said.

Despite growing its software margins, Big Blue last month reported difficulty expanding its sales in the second quarter, citing currency pressures and an unexpected drop in contract signings. The Unica deal, set to close in the fourth quarter, means IBM can offer a more complete product to its marketing clients than before, Standard & Poors Equity analyst Tom Smith said.

"It's a one-stop shopping total solutions strategy," he said. "They want to offer customers everything, so they can come in and do it top to bottom."

Gleacher analyst Brian Marshall saw the move as part of a larger push to create a business intelligence product superior to IBM's competitors. He said that while there are many services the company offers, "intelligence binds them all together."

Unica's 500 employees will be integrated into IBM's software division, which includes 5,000 consultants and a network of analytics centers.

Hayman said Unica's chief executive and founder, Yuchun Lee, will remain and become the segment's business leader once the deal is finalized.

Unica has more than 1,500 global customers across a wide range of industries including financial, retail communications and hospital. The company has swung to the black in each of the past three quarters as revenue has been rising of late.

-By Adam Cancryn and Tess Stynes, Dow Jones Newswires; 212-416-3261; adam.cancryn@dowjones.com
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