Oracle buys Micros Systems for $5.3bn
Dubai, June 24, 2014
Oracle said it has acquired Micros Systems, a provider of integrated software and hardware solutions to the hospitality and retail industries, in a major deal worth $5.3 billion.
The company entered into a definitive agreement to acquire Micros for $68 per share in cash.
Commenting on the deal, Oracle said cloud, mobile, social, big data and the internet of things were impacting every industry, encouraging companies to modernize in order to compete effectively.
This new addition extends Oracle’s offerings in industries by combining Micros’ industry specific applications with their business applications, technologies and cloud portfolio, the company stated.
Together, Oracle and Micros will help hotels, food & beverage facilities, and retailers to accelerate innovation, transform their businesses, and delight customers with complete, open and integrated solutions, it added.
The transaction is expected to close in the second half of 2014, subject to Micros stockholders tendering a majority of Micros’ outstanding shares and shares representing vested equity incentive awards in the tender offer, certain regulatory approvals and other customary closing conditions.
Oracle president Mark Hurd said: "We have successfully helped customers across multiple industries, harness the power of cloud, mobile, social, big data and the internet of things to transform their businesses."
"We anticipate delivering compelling advantages to companies within the Hospitality and Retail industries with the acquisition of Micros," he added.
Peter Altabef, the president and CEO of Micros said the company had been focused on helping the world’s leading brands in its target markets since it was founded in 1977, including running more than 330,000 sites across 180 countries today.
“In combination with Oracle, we expect to help accelerate our customers’ ability to innovate and differentiate their businesses by utilizing Oracle’s technologies, cloud solutions and scale. We are very excited about the great opportunities this will create for our customers and employees,” he added.
Oracle global business units (Executive VP) Bob Weiler said: We are committed to protecting and enhancing customer investments in Micros solutions. Micros’ management and employees will form a dedicated business within Oracle to maintain their focus on serving customers."
“Our industry organizations maintain deep domain expertise and focused investment, which includes more than 18,000 Oracle employees and over $500 million in annual R&D spend. This model has proven highly successful across several industries, and we look forward to bringing these same benefits to the customers of Micros,” he stated.
Oracle president and CFO Safra Catz said the company expected this transaction to be immediately accretive to Oracle’s earnings on a non-GAAP basis and to expand over time.-TradeArabia News Service