Teradata to acquire cloud marketing software firm eCircle

News 2 May, 2012

Latest acquisition looks set to pit data warehousing giant against IBM.

Data warehousing behemoth Teradata is to buy Munich-based email marketing software company eCircle.

All 400 eCircle employees will be integrated into Teradata’s Aprimo application software division and the terms of the deal were not disclosed.

Teradata plans to integrate eCircle’s technology with its data warehousing appliances and its analytics database software. However, eCircle’s products will also still be available to buy as standalone products.

Hermann Wimmer, president of Teradata EMEA, said: “[The deal will] significantly enhance our consulting expertise and expand our applications team, and will move us to being the largest marketing applications provider in Europe.”

The acquisition means Teradata will be pitting itself against IBM, who acquired marketing software firm Unica for $480 million in August of last year and data warehouse appliance maker Netezza for $1.7 billion a month later.

Teradata is no stranger to the acquisition trail either, having purchased Aprimo last December for $550 million and Aster Data for $263 million in March.

Analysts have described the move as a “defensive portfolio play”.

“Teradata brings eCircle into Aprimo, but other than modest integrations, treats it as a SaaS-focused addition to its portfolio of campaign management applications,” said Rob Brosnan of analysts Forrester Research.

“Teradata can contend that it understands digital and SaaS, but this approach ultimately continues the status quo of a fractured marketing technology landscape.”