Oracle Buys Hyperion

March 5, 2007: In a colossal US$3.3 billion deal, Oracle has agreed to buy Hyperion Solutions Corporation, a global leader in performance management software solutions.

The deal will be made via a cash tender of US$52 per share and will catapult Oracle into the leading position in the enterprise performance management market.

According to Oracle CEO Larry Ellison, Hyperion's EPM software coupled with Oracle's Business Intelligence tools and analytic applications will give the company an “end-to-end performance management system that includes planning, budgeting, consolidation, operational analytics and compliance reporting.”

“Requirements for Performance Management and Business Intelligence solutions are increasingly converging,” said Hyperion Chief Executive Officer Godfrey Sullivan. “Given the critical need for managers across the enterprise to align operational decisions with strategy, now is the right time for Hyperion to combine with a strategic partner like Oracle to deliver the first, integrated end-to-end Enterprise Performance Management System.”

Oracle says that the deal will enable it to further its strategic offerings to SAP customers, many of which already rely on Hyperion to manage finances.

"Thousands of SAP customers rely on Hyperion as their financial consolidation, analysis and reporting system of record,” said Oracle President Charles Phillips. “Oracle already has PeopleSoft HR, Siebel CRM, G-Log, Demantra, i-flex, Oracle Retail, and Oracle Fusion Middleware installed at SAP's largest ERP customers. Now Oracle's Hyperion software will be the lens through which SAP's most important customers view and analyse their underlying SAP ERP data."

The transaction is expected to close in April 2007.

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