Oracle smashed 5.3 billion dollars to buy Micros expansion cloud service 3 years late

The IT industry once "shopping crazy" Oracle, after 5 years after the acquisition of the big flag again.

Yesterday (June 24), Oracle announced the acquisition of the hotel industry software and service provider Microssystems (Micros) with $68 a share of $5.3 billion in cash, in the hope of promoting growth in its business through the deal.

The acquisition of Micros is the largest acquisition by Oracle since the 2009 acquisition of Sun, and is directed at the emerging cloud computing business. Investment bank analysts expect the acquisition to help Oracle get rid of threats from NetSuite and Demandware and other emerging e-commerce software providers, saying "This will be the beginning of a series of acquisitions by Oracle."

"Oracle's cloud is the weakest compared to the same level of competitors," said Zhaoheng, a senior it observer, to the daily economic news. This is related to its slow pace, but Oracle has a lot of cash on hand, and strategic goals are starting to focus on the cloud, and there may be a larger capital operation in the future to enhance cloud service capabilities. ”

6 years later, the purchase price rose 3 times times more

Earlier in the week, Bloomberg reported that Oracle and Micros were in exclusive talks on mergers. After the news, Micros shares soared, rising more than 18% in four trading days.

Oracle had decided to buy Micros 6 years ago, when its market capitalisation was around $1.5 billion trillion. Micros Chairman Jannopolos also flew from Maryland to California to sign an agreement, but the talks broke down at the last minute.

In recent years, with the micros of the operation of the development of good, its internet-based cash registers, while providing software and cloud services to the electrical and customer relationship management model has become increasingly popular, the company's global customer network total of more than 330,000, including Yum Group and other industry giants. Data show that Micros's full-year revenue rose 15% to $1.27 billion trillion as of June 2013.

"Micros has been quite successful in hotels and restaurants and is complementary to Oracle in retailing," said a spokesman for Oracle. "Analysts expect Oracle to integrate Micros with its ATG E-commerce platform," he said.

There is much optimism about the deal, which says Oracle has gained 330,000 potential new customers. "As companies continue to enrich their business platforms by adding high quality growth assets at reasonable value, such acquisitions are more of a benefit to Oracle," says Barclays Capital analyst. ”

Senior IT observer Zhaoheng also told the Daily Economic news reporter, "Compared to competitors, Oracle is slow in the cloud, through the acquisition of mature companies can accelerate the development in this area, to deal with SAP, IBM and other competitors." ”

Oracle expects the deal to be completed in the second half of this year and will "soon increase the company's adjusted earnings per share".

Oracle provides the world's largest database software and various middleware services, the world's second largest provider of business software to revenue, after Microsoft.

Extended Cloud service 3 years late

Oracle has bought about hundreds of companies over the past 10 years, but revenue growth, which has been driven by acquisitions in recent years, is no longer sustainable.

As the industry's application trend is migrating to the cloud, Oracle, which is slower to enter the market, is paying the price for its arrogance.

In Thursday (June 20), Oracle released its fourth quarterly earnings report, which showed that Oracle's net profit for the quarter was $3.646 billion, down 4% from $3.807 billion a year earlier. Oracle's shares tumbled more than 6% per cent in the face of weaker financial performance than expected.

According to the Daily economic news reporter, Oracle has not exceeded 5% per cent quarterly revenue fluctuations in the past 11 quarters.

Oracle officially started the SaaS business two years ago, although it accounted for less than 5% of the company's total sales, while SaaS maintained a two-digit year-on-year increase compared to the stalled core licensing business.

Rivals such as SAP, IBM have announced a formal entry into the cloud 3 years ago and launched a series of mergers and acquisitions, totaling more than $20 billion trillion in total trading. So Oracle still needs to speed up.

"We believe that the acquisition of Micros is only the first of the mergers and acquisitions that Oracle will carry out in the next year," Fbrcapitalmarkets analyst Daniel Avis, a brokerage FBR Capital markets, said. ”

In fact, Oracle's "Lessons" in the cloud area have been launched. Just last week, Oracle officially announced acquisitions of screen-sharing and equipment-technology company Livelook to bolster Oracle's ability to compete in cloud computing services.

(Responsible editor: Lu Guang)