Oracle to acquire BEA Systems for $8.5 billion
16 Jan 2008
Mumbai: Oracle Corporation, the world's third-biggest software maker, has agreed to buy business software maker BEA Systems Inc for $8.5 billion, the companies said in a joint statement.
Oracle will pay $19.375 per share for BEA, a 14 per cent premium to its earlier offer of $17 per share, but lower than the $21 per share BEA had demanded.
The offer price of about $19.38 is 24 per cent higher than yesterday's closing price of BAE, Oracle said in a statement.
BEA makes middleware, which helps business computer systems that helps corporates interact with each other.
Redwood, California-based Oracle said the deal would increase its adjusted earnings per share by at least 1 cent to 2 cents in the first full year after closing.
Chief executive Larry Ellison has bought more than 35 companies, spending over $25 billion, to add to Oracle's business applications.
The deal also is a victory for investor activist Carl Icahn, who pressed BEA's board to agree to a takeover. Icahn, the company's biggest shareholder, had moved a Delaware court demanding that shareholders gain the right to vote in a sale. (See:BEA Systems: Oracle withdraws buyout offer; Icahn to sue the board)
BEA shares rose 19 per cent to $18.50 in pre-market trading compared to yesterday's close on Nasdaq of $15.58. Oracle shares ticked lower, to $21.01 from their previous close of $21.31.
