Thursday, January 17, 2008

Oracle BEA In A New Deal

In the heels of Sun's announcement that it will acquire open source database company MySQL AB for about $1 billion, database giant Oracle said it had reached an agreement to acquire BEA for $8.5 billion.

NEW YORK (CNNMoney.com) -- Software giant Oracle Corp. reached a deal to buy rival BEA Systems Inc. for $8.5 billion Wednesday, just months after its initial offer was rebuffed.

Oracle agreed to pay $19.375 in cash for each share of BEA, representing a 24 percent premium to where BEA's shares closed Tuesday.

Oracle said the deal is worth $7.2 billion, since BEA has $1.3 billion in cash on hand. The deal is expected to close in mid-October.

"For Oracle, this deal is a very big step towards completing our [goal] of being a strategic software vendor of choice for our customers," Oracle CEO Larry Ellison said during a conference call with investors.


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