IBM Friday announced that it has acquired Princeton Softech, a maker of data archiving, classification and discovery products, to bolster its own data management offerings. Financial terms weren't disclosed.

Princeton Softech's products help customers improve database performance by separating historical data from current data and storing it securely and cost effectively, IBM says. The vendor's test data management technology helps customers maintain data privacy by creating test databases that mask and protect sensitive data.

An IBM spokeswoman says the company expects the acquisition to contribute to growing revenue in IBM's database business. The purchase is the 22nd acquisition related to IBM's Information On Demand strategy, which has a stated goal of helping "organizations leverage their information to better know customers, speed products to market, manage risks, keep ahead of competition, and foster innovation."

The acquisition will be the sixth by IBM in the past two years with a focus on helping customers reduce their costs in managing data. In 2005, it acquired DWL and SRD; in 2006 IBM bought FileNet and Unicorn Solutions; and just last month IBM added DataMirror to its portfolio.

The Princeton Softech products will become part of IBM's Software Group's Information Management Software division. The company's products compete with those from Solix and Outerbay (acquired by HP in 2006).

"As data retention needs intensify, customers are looking for ways to slash their escalating operating costs and maintain system responsiveness, while protecting the privacy of customer and employee information," IBM stated in a press release. "Many organizations are finding that storage management is now or will soon represent greater than 50 percent of their annual IT budget."

Princeton Softech has approximately 240 employees and 2,200 customers. Among its customers are British Telecom, Safeco Insurance and American Airlines.