Oracle to Buy Responsys for $27 Per Share
Oracle Corp. (NYSE: ORCL – $36.75), the world’s second largest business software provider, said it would buy web-based marketing software maker Responsys Inc. for about $1.39 billion to enhance its cloud computing offerings. 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. Oracle has been focusing on cloud-based software and services to fend off competition from aggressive rivals such as Salesforce.com and Workday Inc, which offer web-based products at prices that often undercut Oracle. Long an industry standard for server-based application and system software, ORCL came late to cloud computing, but has now 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. Following Wednesday’s positive earnings surprise, Oracle is at a 52-week high and remains a decent conservative candidate for the long haul.