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Data-Storage Stocks Juiced by IBM Deal

Published on September 20, 2010
by Benjamin Pimentel

The latest buying spree in technology rolled on Monday, with Big Blue’s $1.7 billion takeover deal with Netezza Corp. (NZ), which comes on the heels of last month’s high-intensity bidding war over 3Par Inc.

The Netezza deal underscored a key trend: Small companies with the valued know-how for storing and quickly analyzing data are finding themselves drawing attention from the biggest names in technology.

In fact, the attention is so intense that Netezza’s stock was trading roughly a buck higher than IBM’s (IBM) $27-a-share offer by Monday afternoon–suggesting that some investors believed another bidding war would erupt.

Last month’s battle between Hewlett-Packard Co. (HPQ) and Dell Inc. (DELL) for 3Par (PAR) resulted in a deal that more than tripled the market value of the small data-storage provider.

Meanwhile, the enthusiasm for data storage continued to spread to other players widely considered to rank among the top acquisition candidates.

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