Tags: Oracle | Micros | cloud | computing

Oracle Said Near Deal for Micros Systems at More Than $5 Billion

Tuesday, 17 Jun 2014 12:11 PM

Oracle Corp. is nearing a deal to buy hospitality-industry software provider Micros Systems Inc. for more than $5 billion, people familiar with the matter said.

Oracle and Micros are in exclusive talks, though the two sides could still fail to reach an agreement, said the people, who asked not to be identified discussing a private matter.

Oracle Chief Executive Officer Larry Ellison is looking to acquisitions to fuel expansion after 10 quarters of sluggish sales growth. The company was late to the market for Internet-based cloud software and Ellison is now rushing to remake Oracle as a provider of gear and programs to underpin its clients’ shift to Web-based computing.

Dealmaking in the technology space is accelerating as established software companies try to navigate the shift to cloud computing and see off challenges from new competitors. Earlier this week SanDisk Corp. agreed to buy Fusion-io Inc., which provides storage to Facebook Inc. and Apple Inc., for about $1.1 billion.

Deborah Hellinger, a spokeswoman for Oracle, and Peter Rogers, executive vice president of investor relations at Micros, didn’t immediately return calls seeking comment.

Oracle Earnings

Based in Columbia, Maryland, Micros sells software and services for hotels, restaurants, and retailers. Micros has gained 36 percent in the year through yesterday, giving it a market value of $4.3 billion. Oracle has a market value of about $189 billion.

The company will report its quarterly earnings on Thursday. In the previous quarter, license and cloud-subscription revenue fell short of analysts’ estimates.

Oracle has spent $50 billion to acquire about 100 companies in the past decade. Of those, more than 20 have been geared at specific industries, including the 2010 acquisition of clinical-trial software maker Phase Forward Inc., and purchases of retailer-software makers ProfitLogic Inc. and Retek Inc. in 2005.

The acquisition of Micros would be Oracle’s largest since the $5.7 billion takeover of Sun Microsystems Inc., announced in 2009, data compiled by Bloomberg show.

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Oracle Corp. is nearing a deal to buy hospitality-industry software provider Micros Systems Inc. for more than $5 billion, people familiar with the matter said.
Oracle, Micros, cloud, computing
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2014-11-17
Tuesday, 17 Jun 2014 12:11 PM
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