Oracle To Buy Micros Systems In $5.3 Bln Deal

(RTTNews) - Enterprise software provider Oracle Corp. (ORCL) agreed Monday to acquire IT solutions provider Micros Systems, Inc. (MCRS) for $68.00 per share in an all-cash deal valued at about $5.3 billion.

The deal will enable Oracle to expand its solutions to more industries by adding a hospitality and retail technology vendor.

"Oracle has successfully helped customers across multiple industries, harness the power of cloud, mobile, social, big data and the internet of things to transform their businesses. We anticipate delivering compelling advantages to companies within the Hospitality and Retail industries with the acquisition of MICROS," Oracle President Mark Hurd said in a statement.

Columbia, Maryland-based Micros Systems is a provider of integrated point of sale software and hardware solutions to hotels and restaurants.

If the proposed deal goes through, it would be Redwood City, California-based Oracle's biggest since its $5.6 billion acquisition of Sun Microsystems Inc. in January 2010.

The offer price represents a 24.4 percent premium over Micros' unaffected closing share price of $54.67 on June 13, the last trading day prior to media reports on the impending deal.

The deal, which is unanimously approved by the board of directors of Micros, is expected to close in the second half of 2014. However, the closure of the deal is primarily subject to the tendering of a majority of Micros' outstanding shares in favor of the deal.

Oracle noted that it expects the deal to be immediately accretive to its adjusted earnings per share and to expand over time.

Until the transaction closes, Oracle and Micros will continue to operate independently and it is business as usual.

"In combination with Oracle, we expect to help accelerate our customers' ability to innovate and differentiate their businesses by utilizing Oracle's technologies, cloud solutions and scale. We are very excited about the great opportunities this will create for our customers and employees," Micros President and CEO Peter Altabef stated.

ORCL closed Friday's regular trading session at $40.82, up $0.56 on a volume of 65.08 million shares, and MCRS closed at $65.77, up $0.87 on a volume of 1.74 million shares.