Oracle splashes $1.4bn on Responsys

By on
Oracle splashes $1.4bn on Responsys

In cloud software push.

Oracle will buy web-based marketing software maker Responsys for about US$1.39 billion (A$1.55 billion) to bolster its cloud computing offerings.

Oracle has been focusing on cloud software to fend off competition from nimbler rivals such as Salesforce.com and Workday, which offer web-based products at prices that often undercut Oracle.

Four-decade-old Oracle, which came late to cloud computing, has created sales teams targeting specific cloud competitors and is trying to be a one-stop shop for operating systems, databases and software programs over the web.

Responsys makes cloud-based software that businesses use to manage their marketing campaigns across e-mail, mobile and the internet. Its customers include LinkedIn, Southwest Airlines, and United Healthcare.

The deal comes exactly a year after Oracle said it would buy Eloqua, a maker of cloud-based marketing automation software, for US$810 billion. Earlier this year, Salesforce.com acquired ExactTarget, another marketing software maker, for US$2.5 billion.

Oracle's offer of US$27 per share represents a premium of about 38 percent to Responsys' Thursday closing. Responsys shares were trading at US$26.94 on the Nasdaq on Friday.

Oracle priced the deal at about US$1.5 billion, net of Responsys' cash.

The deal, which has been approved by the board of directors of Responsys, is expected to close in the first half of 2014.

Oracle shares were down marginally at US$36.65 in midday trading on the New York Stock Exchange. Marketo shares jumped nearly 10 percent.

The Responsys deal, Oracle's seventh acquisition in the year, is also its biggest since it acquired network gear maker Acme Packet for US$1.7 billion in February.

Tags:

Most Read Articles

Log In

Username:
Password:
|  Forgot your password?