The Marketing Software Convergence Continues: Teradata Acquires Aprimo For $525 Million

Teradata announced today that it was entering into an agreement to acquire Aprimo, a privately held enterprise marketing platform company, with a strong focus on Campaign Management and Marketing Resource Management (MRM). Coming on the heels of the acquisition binge by IBM who acquired Unica, Coremetrics, and a bunch of other analytics and data management companies, we can safely say that marketing automation and campaign management solutions are up for grabs.

I was briefed by Teradata and Aprimo executives on the rationale for the acquisition. They expect the deal, valued at US$525 million, to close in Q1 2011. Now this is an even greater premium than IBM paid for Unica. So besides this being a very happy holiday season for Aprimo executives and the board, what does this mean for marketers, CI professionals, and competitors? Here’s my take on the deal:

  1. Signals Teradata’s seriousness about the application business. Clearly all the data that drives Teradata's revenue isn’t enough. This acquisition signals a belief that Teradata views the business application space as critical to drive the utilization of the enterprise data warehouse. The fact that Aprimo has a strong on-demand marketing software business isn’t lost on Teradata either.  
  2. Strong complementary fit. In my experience covering this market and helping CI professionals select marketing technology, I rarely see Aprimo and Teradata compete in the same deal. Aprimo is always a better fit in B2B, mid-enterprise, or process management focused deals while Teradata TRM is a better fit in high-volume, retail-centric, or analytical campaign management propositions. So the coming together of these companies means strengthening the other’s weakness. In addition, they share some marquee clients like Walmart and Dell, which always helps.
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