18 July 2018
Register today

Oracle to buy BEA for $8.5bn

16 January 2008  |  4563 views  |  0 Oracle to buy BEA for $8.5bn

Oracle has signed a definitive agreement to acquire service-oriented architecture (SOA) vendor BEA Systems in a deal worth approximately $8.5 billion.

Under the agreement Oracle will pay $19.375 per share for California-based BEA Systems. The offer represents a 24% premium over BEA's closing price of $15.58 on Tuesday.

News of the deal comes three months after BEA Systems dismissed an earlier unsolicited $6.7 billion, or $17 a share, takeover offer from Oracle as too low.

The $19.375 per share deal is thought to represent a compromise between the $17 that Oracle originally offered for the company and the $21 per share price that BEA reportedly wanted.

Oracle president, Charles Phillips, says: "This transaction will accelerate the adoption of Java-based middleware technologies and SOA; advance innovation in enterprise applications infrastructure software; extend our strategic relationships with customers and partners; and increase our penetration in key regions like China."

Commenting on the deal, BEA chairman and CEO Alfred Chuang says: "This transaction is the culmination of that diligent and thoughtful process, and we believe it is in the best interests of our shareholders."

Oracle says BEA's board of directors has unanimously approved the transaction. The deal is expected to close by mid-2008, subject to BEA stockholder approval, regulatory approvals and customary closing conditions.

BEA has been under pressure to sell from activist investor Carl Icahn, who holds a 13.2% stake in the company. According to press reports Icahn is set to vote in favour of the merger with Oracle.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

SAP shakes up management at TomorrowNow unit

SAP shakes up management at TomorrowNow unit

20 November 2007  |  3871 views  |  0 comments
Oracle forms financial services strategy council

Oracle forms financial services strategy council

14 November 2007  |  4776 views  |  0 comments
Oracle bids to acquire BEA

Oracle bids to acquire BEA

12 October 2007  |  4858 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit info.nice.comVisit http://go.jumio.com/finextraAdVisit https://secure.vasco.com

Top topics

Most viewed Most shared
Metro Bank opens developer portalMetro Bank opens developer portal
9782 views comments | 5 tweets | 14 linkedin
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
9552 views comments | 3 tweets | 7 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
9333 views comments | 6 tweets | 15 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
8556 views 19 comments | 14 tweets | 30 linkedin
Citi to streamline corporate receivables with HighRadiusCiti to streamline corporate receivables w...
8030 views comments | 1 tweets | 5 linkedin

Featured job

Competitive base, double ote, benefits
New York City, NY - USA

Find your next job