IBM has finalized the acquisition of Varicent Software in a move by the US IT services and software group to further grow its business analytics offering.

Varicent, a privately held Canadian company, makes analytics software for compensation and sales performance management. The company's products will become part of IBM's Smarter Analytics line of software offerings.

"The acquisition of Varicent advances IBM's efforts to drive analytics capabilities into the hands of front line employees to transform business operations and ultimately improve the bottom line," said Les Rechan, general manager, business analytics, at IBM.

Business analytics is a growing market that caters to companies looking to manage, automate and analyze ever increasing volumes of data.

IBM said that it expects the acquisition to close in the second quarter.