Feeds

BEA finally says yes to Oracle - for $8.5bn

Larry flashes extra cash

The Power of One Brief: Top reasons to choose HP BladeSystem

Oracle has signed a definitive agreement to buy BEA for $8.5bn.

Larry Ellison's Oracle will pay $19.375 for each BEA share - BEA shares were trading at $15.58 before the offer was made.

The two have been courting for some time although Oracle walked away from a possible deal in October after saying it could not better its offer of $17 a share. BEA had demanded as much as $21 a share.

Ellison said: "BEA products will significantly enhance and extend Oracle's Fusion middleware software suite...customers can choose among Oracle and BEA's middleware products, knowing that those products will gracefully interoperate and be supported for years to come.".

At $19.375 per share, Oracle is paying $8.5bn for the middleware firm - or $7.2bn once BEA's cash pile of $1.3bn is removed from the equation.

BEA's board of directors has unanimously accepted the offer, subject to shareholder and the usual regulatory approval. It is expected to close within six months. Oracle expects the takeover to add 1-2 cents per share to its earnings on a non-GAAP basis in the first full year after closing.

The two firms conducted an embarrassing woo fest last October. Oracle made a surprise offer for BEA at $17 per share. BEA initially rejected the bid out of hand, but within days thought better, and started batting its eyelids and cooing that it would happily entertain suitors at $21 per share.

Oracle refused to bite though, and, seemingly, followed through on its threat to simply walk away from the deal. It added, spitefully: "Nobody would seriously consider paying that kind of multiple for a software company with shrinking new license sales."

Oracle’s stomping into the sunset prompted BEA’s biggest stockholder, activist shareholder Carl Ichan, to let rip at the firm’s management. Icahn added ominously: "You should have no doubt that I intend to hold each of you personally responsible to act on behalf of BEA's shareholders in full compliance with the high standards that your fiduciary duties require, especially in light of your past record."

Three months on, and with the economy definitely on the turn, all parties appear to have found they can all get on afterall.

The press release is here.®

The Essential Guide to IT Transformation

More from The Register

next story
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
KDE releases ice-cream coloured Plasma 5 just in time for summer
Melty but refreshing - popular rival to Mint's Cinnamon's still a work in progress
Leaked Windows Phone 8.1 Update specs tease details of Nokia's next mobes
New screen sizes, dual SIMs, voice over LTE, and more
Put down that Oracle database patch: It could cost $23,000 per CPU
On-by-default INMEMORY tech a boon for developers ... as long as they can afford it
Another day, another Firefox: Version 31 is upon us ALREADY
Web devs, Mozilla really wants you to like this one
Google shows off new Chrome OS look
Athena springs full-grown from Chromium project's head
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.