After this announcement, Oracle increased by 28 cents per share and closed at USD 41.10. Micros actually develops software and services for restaurants, hotels and hospitality industries. Micros’ software is basically used for tasks such as business analytics, reservation systems and point-of-sales devices. Oracle hopes that its acquisition would close sometime in the second half of this year, and it also expects that the deal would affect its earnings positively.
Oracle has already made such acquisitions in the past so as to expand in new industries. Daniel Ives, who usually covers Oracle for FBR Capital Markets, said, that he expects the buy of Micros to lead “a surge of M&A activity at Oracle over the coming year.”
Moreover, Ives said, “The company needs to quickly put more growth fuel in its engine. As evidenced by Oracle’s soft May (earnings quarter) results last week, CEO Larry Ellison & co. have some work ahead of themselves to morph Oracle into its next phase for growth around attacking the cloud.”
According to Ives, Micros deal suits Oracle as it will complement the current e-commerce platform of the company and “give the company a potential solution to stave off the emerging threat from SaaS [software as a service] vendors such as Demandware and NetSuite.”
Furthermore, the deal also stands out as the largest acquisition by Oracle after it bought Sun Mircrosystems for USD 7.4 billion in the year 2010.
The shares of Micros increased by 3.4% to USD 67.98 per share, which is just about the per share value (USD 68) which it agreed in the Oracle acquisition.