US business software giant Oracle has agreed to acquire rival Siebel Systems in a deal worth $5.85 billion.
The deal gives Oracle - the world's second largest software group after Microsoft - a strong base in an area of software for business known as customer-relationship management (CRM).
'In a single step, Oracle becomes the number one CRM applications company in the world,' said Oracle chief executive Larry Ellison.
The companies put the total value of the transaction at $5.85 billion, a figure that reflects Siebel's $2.2 billion in cash.
The companies expect the deal, which already has received the approval of Siebel's board, to close in early 2006. Company founder and chairman Tom Siebel has agreed to vote in favour.
