Oracle (ORCL) Nearing $5B Purchase of Micros Systems (MCRS): Report

Oracle Corporation (ORCL) is in talks to buy Micros Systems (MCRS) for more than $5 billion, according to a report from Bloomberg News.

Micros, a provider of software and services for the hospitality industry, soared as mush as 22% to $70.24 on the news, its biggest gain since February 2009. Oracle gained nearly 1% to $42.56.

Citing people familiar with the matter, Bloomberg said Tuesday that while the two sides are in exclusive talks, they could still fail to reach an agreement. Micros had a market cap of more than $5 billion at Tuesday’s close.

Although Redwood Shores, Calif.-based Oracle has been late to the market for Internet-based cloud software, CEO Larry Ellison has ramped up efforts to catch up to rival software makers who capitalized on the explosive growth and popularity of cloud services and web-based aps, especially since his company has reported 10 quarters with disappointing revenue and sluggish sales growth.

Ellison said [via ZDNET] at a CloudWorld event in January that cloud computing gives the company “a lot of new market to pursue”, and that internally it has been “dramatically increasing its sales force” to accommodate its current customers and companies.

If speculation of the acquisition price is correct, this would be Oracle’s largest purchase since it acquired Sun Microsystems for $5.6 billion in 2009.

Be the first to comment

Leave a Reply

Your email address will not be published.


*