Oracle may buy Micros Systems for more than $5 bln: Report | HT Tech

Oracle may buy Micros Systems for more than $5 bln: Report

Oracle Corp is in talks to buy Micros Systems Inc, which makes software for retailers and hotel chains, for more than $5 billion, Bloomberg reported citing people familiar with the matter.

By:REUTERS
| Updated on: Jun 18 2014, 10:22 IST

Oracle Corp is in talks to buy Micros Systems Inc, which makes software for retailers and hotel chains, for more than $5 billion, Bloomberg reported citing people familiar with the matter.

While the companies are in exclusive talks, they could still fail to reach an agreement, the report said.

Micros shares were up 16 percent at $67.10 in early afternoon trading on the Nasdaq. Oracle shares were up 1 percent at $42.61.

Micros Systems makes point-of-sale hardware and software for restaurants and hotels.

FBR Capital Markets analyst Daniel Ives said Oracle's rivals could offer a higher bid to drive up the price.

'We believe the most likely candidates would be SAP or IBM, which offers WebSphere, its own enterprise class e-commerce platform,' FBR Capital Markets analyst Daniel Ives said.

A deal will let Oracle stave off threat from software-as-a-service e-commerce vendors such as Demandware Inc and NetSuite Inc, Ives said.

Oracle has been rolling out its own cloud-based products and acquiring smaller cloud companies such as marketing software maker Responsys Inc.

The company has also reorganized its sales team to catch up with rivals such as Salesforce.com Inc, SAP AG and Workday Inc.

Smaller, aggressive companies like Salesforce.com and Workday have often undercut Oracle's pricing with competitive software and Internet-based products.

Four-decade-old Oracle's strategy is to integrate software with its own high-end, expensive hardware for greater efficiency.

Chief Executive Larry Ellison has said he plans to compete aggressively against rivals offering cloud-based technology infrastructure services, like Amazon.com and Rackspace Hostings Inc.

Oracle reported quarterly revenue and profit that failed to satisfy investors looking for signs of a sustained turnaround and forecast in-line current-quarter results in March. The company is expected to report fourth-quarter results on June 19.

The deal, if confirmed, would be Oracle's largest acquisition since it bought Sun Microsystems for $5.6 billion in 2009.

Follow HT Tech for the latest tech news and reviews , also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 18 Jun, 10:18 IST
NEXT ARTICLE BEGINS