Oracle: Looking to add more Value
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Oracle Corp. is one of the most well known enterprise software companies in the world. But guess what? They did not get this way by standing pat, and hoping to grow from year to year. Once again, Oracle is looking to make an acquisition of another company.
This morning, Oracle offered to purchase BEA Systems, Inc. for $17 per share cash. BEA makes business management software, which would obviously fit in well with the areas in which Oracle are already involved.
On October 9, Oracle sent a letter to the BEA board with details on the possible takeover. Shortly after doing so, BEA stock increased by 33 percent on Nasdaq.
In the letter, Oracle makes no bones about wanting to move forward as soon as possible. Why is this coming about, you may ask? Charles Phillips, Oracle President, said that he has had several conversations with BEA management over the past few years. Obviously, Phillips would not have made an offer if he did not think that there was a good chance of striking up a deal.
If Oracle adds BEA Systems, Inc. to their current offerings, it is safe to say that they will become an ever bigger power within the enterprise software industry.
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