Oracle to acquire Siebel for $5.85 billion
Database industry giant Oracle has announced that they would be acquiring its little competitor Siebel Systems Inc. for $5.85 billion in cash and stock. This is just the latest of the series of acquisitions Oracle has made in the last couple of months to gain a rival’s customers as their own market has somewhat slowed down in the last couple of years. Seems like, acquisitions have become the simplest way to gain more customers and a larger market base.
The deal also removes the speculations on the future of this little company, which develops customer-account software, which is now struggling in the market due to competition from Salesforce.com Inc. The deal means that Oracle is paying around 17% premium on the shares of the company, which currently has the share value of around $9.13 in the market.
Oracleâ€™s CEO Larry Ellison has initiated these series of acquisitions after noticing that their own sales of their primary offering Oracle’s database software was slowing down in the market. They recently bought PeopleSoft for more than $10.5 billion to gain back-office software in a rather controversial manner, which involved intervention by the courts.
And this latest acquisition would help them gain more customers as they look to better their competition German giant SAP AG as the top supplier of corporate software.