US business software giant Oracle has reached an agreement to take over rival BEA Systems in a $8.5 billion deal.
The deal, which has won the approval of BEA's board of directors, comes after BEA had rebuffed a prior takeover from Oracle last year valued at $6.68 billion. The two technology firms hope to close the deal by mid-2008 depending on regulatory and shareholder approvals.
Oracle founder and CEO Larry Ellison said the takeover would significantly boost the California-based firm's software capabilities and enhance Oracle's earnings.
Oracle's takeover values BEA, which is also headquartered in California, at $19.37 a share compared with its prior bid of $17.00.
Oracle, the world's second-largest software group, is mounting a fierce battle against German rival SAP in the big market for software to help companies carry out a variety of tasks, such as managing sales and tracking financial and inventory data.
