New York - IBM has reached a deal to buy business intelligence software company SPSS for 1.2 billion dollars, it announced Tuesday.

Chicago-based SPSS makes software that mines data for predictive analysis, allowing executives to make better business decisions. The company had revenues of 303 million dollars in 2008.

IBM said the all-cash transaction valued SPSS at 50 dollars a share.

"With this acquisition, we are extending our capabilities around a new level of analytics that not only provides clients with greater insight - but true foresight," said Ambuj Goyal, general manager of information management. "Predictive analytics can help clients move beyond the 'sense and respond' mode to 'predict and act' for improved business outcomes."(dpa)