Oracle to Acquire BEA for $8.5 Billion
Oracle to Acquire BEA for $8.5 Billion
January 17, 2008: Ending months of speculation and jostling over details, Oracle have announced they will be acquiring the software giant, BEA systems for US $8.5 Billion (AU $9.67 Billion).
While the deal has been on the table for a while, there were times when it was looking like it wasn’t going to happen. Today’s announcement proves that there was no credence to the concern as Oracle enters into a definitive agreement to acquire all of BEA’s outstanding shares for US $19.375 (AU $22.05).
“We expect this deal to be accretive to Oracle's earnings by at least 1-2 cents on a non-GAAP basis in its first full year after closing,” said Safra Catz, chief financial officer at Oracle.
Oracle’s proposal was met with unanimous approval by the board of directors at BEA and is now subject to stockholder and regulatory approval. Both companies anticipate that the deal will be finalised by mid-2008.
“This transaction will accelerate the adoption of Java-based middleware technologies and SOA; advance innovation in enterprise applications infrastructure software; extend our strategic relationships with customers and partners; and increase our penetration in key regions like China.” said Charles Phillips, Oracle President.