Oracle on Monday confirmed rumors of plans to purchase Micros Systems. The company will pay $68 per share for Micros – a premium of $2.23 per share based on Friday’s closing price – as part of a deal valued at $5.3 billion, or $4.6 billion net of cash.
Micros stock was trading some $10 cheaper early last week before acquisition rumors sent share value up nearly 15 percent in one day. The surge propelled the stock to a new 52-week high and ultimately meant more money for investors and more money out of Oracle’s pockets.
By most accounts, the deal looks to be a win-win for both companies. Summit Research Partners analysts Richard Williams and Srini Sundararajan said they think it makes sense from a number of perspectives. One aspect would be vertical expertise in parts of retail that are spending increasing amounts on IT infrastructure. Another would be to provide tighter integration between Oracle’s database and software stack for hotel retailers.
Other analysts believe the move could help Micros expand internationally. Speaking on the matter, Micros CEO Peter Altabef said they will utilize Ocracle’s technologies, cloud solutions and scale to accelerate their customers’ ability to innovate and differentiate their businesses.
The deal is expected to close sometime during the second half of this year pending regulatory approval. Share value in Oracle is up just 0.76 percent as of writing at $41.13.