IBM to buy software company for $440MIBM said Thursday that it had agreed to buy DemandTec, a Web-based enterprise software company, for $440 million in cash, expanding its offerings of analytics software. DemandTec, a provider of analytics software for retailers, is at the intersection of two trends in enterprise technology: the growth of cloud-based services and data analytics. The rise of these markets has spurred dealmaking in recent months. On Saturday, SAP of Germany announced plans to buy SuccessFactors, a human resource management service, for $3.4 billion. And less than two months ago, Oracle agreed to buy RightNow Technologies for $1.43 billion. In each case, the buyers offered big premiums to shareholders. IBM is paying $13.20 a share, 56.6 percent above DemandTec's closing price Wednesday.
Initial unemployment figures at 9-month lowThe number of people filing for state unemployment benefits for the first time fell 23,000 to the lowest level since late February, the government said Thursday. The Labor Department said claims fell to a seasonally adjusted 381,000 last week. The level of initial claims in the week ended Nov. 26 was revised up by 2,000 to 404,000. A Labor Department official said that seasonal adjustment factors were at play in the large decline.
Household debt declines againHouseholds reduced their debt in the third quarter for the 13th straight period as the housing market bust continues to reduce demand for mortgages. The Federal Reserve said Thursday in its massive flow-of-funds report that household debt fell at a seasonally adjusted annualized rate of 1.2 percent, as a 1.8 percent decline in mortgage debt offset a 1.2 percent gain in consumer credit. The mortgage debt decline came as consumers took out fewer mortgages and paid off -- or were forgiven -- debts.
Ford Motor Co. will pay a dividendFord declared a 5-cent quarterly dividend, its first payout to shareholders since September 2006. The move comes after the second-largest U.S. automaker posted its 10th consecutive profitable quarter and negotiated a new four-year contract with the United Auto Workers.
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