Oracle Buys Micros Systems
As I suggested yesterday as a “possibility”, Oracle Corp. (NYSE: ORCL – $41.07) confirmed it has offered $5.3 billion to acquire Micros Systems, which would be the biggest deal for Oracle since its $7.4 billion acquisition of Sun Microsystems in 2010. Micros offers a range of software, hardware and related services along with rapidly growing cloud solutions to manage hotels, food and beverage operations and general retailer customers. Applications include point of sale, property management, business intelligence, e-commerce, order and inventory management and merchandise planning solutions and are in use across 330,000 customer sites in 180 countries. Micros has had a long history of working with Oracle technology, and through this transaction Oracle will be able to extend its offerings by combining Micros’ industry specific applications with its business applications, technologies and cloud portfolio. This may not be the end to Oracle’s shopping binge, as the company has $39 billion in cash and marketable securities and is looking to find ways to extend its cloud computing business and offset declines in server-based software. The shares can remain a solid holding in a conservative portfolio for above-average long-term gains.