Oracle will buy Micros Systems in a US$5.3 billion (A$5.6 billion) deal, as the world's second largest business software maker looks to boost flagging growth through acquisitions.
The purchase of Micros, which makes point-of-sale hardware and software for restaurants and hotels, is the first multi-billion dollar acquisition by Oracle in five years and follows disappointing fourth-quarter results.
Analysts said the acquisition could be first in a string of deals for Oracle, which has been stung by aggressive pricing by companies such as Salesforce.com and Workday.
"I think this is really [Oracle CEO] Larry Ellison looking in the mirror realising the need to get aggressive yet again on M&A," FBR Capital Markets analyst Daniel Ives said.
"It is clear to us that the company needs to quickly put more 'growth fuel in its engine' to catalyse growth in the top-line,"
The Micros deal fits with Oracle's plan to expand its fast-growing cloud business, where it has been a late entrant.
Micros sells internet-connected cash registers and provides a host of cloud-based services such as e-commerce and customer relationship management to hotels and restaurant chains,
Micros' full-year revenue rose 15 percent to US$1.27 billion in the year ended June 2013.
Oracle's spree of acquisitions has slowed of late. Micros is the company's largest acquisition since its US$5.6 billion purchase of Sun Microsystems in 2009.
"I believe it's just the beginning of a massive M&A cycle for Oracle where we could see them spending US$15-US$20 billion in acquisitions over the next one to two years," Ives said.
He expected the deals would be focused on cloud, big data as well as cyber security.
The company had US$38.8 billion of cash and short-term investments as of May 31, positioning it for more acquisitions.
Oracle said it offered Micros shareholders US$68 per share, representing a premium of 3.4 percent to the stock's Friday close.
Micros shares were trading at US$67.97 on Monday afternoon.
Oracle said the transaction is expected to add to earnings immediately.
Wedbush analyst Steve Koeing estimated the deal would add about 3-4 percent to Oracle's revenue and add 3 cents to 4 cents per share to its earnings on a twelve-month basis.
Oracle's shares were up 0.7 percent at US$41.09.