Oracle to buy Micros Systems in $5.3 billion dealMonday 23 June 2014 16.46
Oracle said it would buy Micros Systems in a $5.3 billion deal as the world's second biggest business software maker looks to boost flagging growth through acquisitions.
The purchase of Micros, which makes point-of-sale hardware and software for restaurants and hotels, is the first multi-billion dollar acquisition by Oracle in five years and follows disappointing fourth-quarter results.
Analysts said the acquisition could be first in a string of deals for Oracle, which has been stung by aggressive pricing by companies such as Salesforce.com and Workday for their software and Internet-based products.
Larry Ellison-led Oracle's spree of acquisitions has slowed of late. Micros is the company's largest acquisition since its $5.6 billion purchase of Sun Microsystems in 2009.
Oracle said it offered Micros shareholders $68 per share, representing a premium of 3.4% to the stock's Friday close.
Up to Friday's close, Micros shares had risen 14% since Bloomberg reported on June 17 that the companies were in talks.
Analysts said the Micros deal could help Oracle stave off threat from e-commerce software providers such as Demandware and NetSuite.
Oracle last week reported flat new software sales and internet-based software subscriptions in its fiscal fourth quarter, disappointing investors looking for progress against rivals selling Web-based services. It said the transaction is expected to add to earnings immediately.