Oracle offer for BEA Systems

by Wenonah Lyon

Story link: Oracle offer for BEA Systems

Oracle has offered about $6.65bn for BEA Systems, which provides application software and middleware to software developers establishing systems on which financial services software operate. Oracle is offering £17 per share for BEA, a twenty five percent premium on the 11 October closing price.

This offer, according to Oracle President Charles Darwin, is the result of extended discussion with BEA’s management and he expects to conclude a ‘friendly transaction’ as soon as possible. The sale of BEA is supported by billionaire investor Carl Icahn, who, by 4 October, had a 13.22 percent stake in BEA Systems.

In the last few years, Oracle has bought other speciality software makers providing applications for business software. In early 2006, Oracle bought Siebel Systems for about $6bn. and in early 2007 it spent more than £3bn acquiring Hyperion Solutions. This proposed deal would allow Oracle to compete in the market now dominated by Microsoft and Germany’s SAP.