Oracle Corp is in talks to buy Micros
Systems Inc, which makes software for retailers and hotel chains, for
more than $5 billion, Bloomberg reported citing people familiar with the
matter.
While the companies are in exclusive
talks, they could still fail to reach an agreement, the report said.
(http://r.reuters.com/hyw22w)
Micros shares were up 16 percent at $67.10 in early afternoon trading on the Nasdaq. Oracle shares were up 1 percent at $42.61.
Micros Systems makes point-of-sale hardware and software for restaurants and hotels.
Micros shares were up 16 percent at $67.10 in early afternoon trading on the Nasdaq. Oracle shares were up 1 percent at $42.61.
Micros Systems makes point-of-sale hardware and software for restaurants and hotels.
Oracle declined to comment, while Micros could not be immediately reached for comment.
FBR Capital Markets analyst Daniel Ives said Oracle’s rivals could offer a higher bid to drive up the price.
“We believe the most likely candidates
would be SAP or IBM, which offers WebSphere, its own enterprise class
e-commerce platform,” FBR Capital Markets analyst Daniel Ives said.
A deal will let Oracle stave off threat
from software-as-a-service e-commerce vendors such as Demandware Inc and
NetSuite Inc, Ives said.
Oracle has been rolling out its own cloud-based products and acquiring smaller cloud companies such as marketing software maker Responsys Inc.
Oracle has been rolling out its own cloud-based products and acquiring smaller cloud companies such as marketing software maker Responsys Inc.
The company has also reorganized its sales team to catch up with rivals such as Salesforce.com Inc, SAP AG and Workday Inc.
Smaller, aggressive companies like Salesforce.com and Workday have often undercut Oracle’s pricing with competitive software and Internet-based products.
Smaller, aggressive companies like Salesforce.com and Workday have often undercut Oracle’s pricing with competitive software and Internet-based products.
Four-decade-old Oracle’s strategy is to integrate software with its own high-end, expensive hardware for greater efficiency.
Chief Executive Larry Ellison has said
he plans to compete aggressively against rivals offering cloud-based
technology infrastructure services, like Amazon.com and Rackspace
Hostings Inc.
Oracle reported quarterly revenue and
profit that failed to satisfy investors looking for signs of a sustained
turnaround and forecast in-line current-quarter results in March. The
company is expected to report fourth-quarter results on June 19.
The deal, if confirmed, would be Oracle’s largest acquisition since it bought Sun Microsystems for $5.6 billion in 2009.
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