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Oracle to Acquire Retek

''Neither our shareholders nor retail customers would benefit from an auction process that would further inflate the purchase price,'' says the chief executive of SAP.
Stephen Taub, CFO.com | US
March 23, 2005

Oracle Corp. chief executive officer Larry Ellison announced Tuesday that his enterprise software firm will acquire retail-management software maker Retek Inc. for $11.25 per share. Oracle beat out arch-rival SAP, which had offered $11 per share.

"Oracle has the largest applications business in North America, and we intend to expand that leadership position," said Ellison in a statement. "Combining Oracle with Retek is an important step in that direction, and it strengthens our position in the retail applications market globally." Walldorf, Germany-based SAP is the world's largest maker of business applications software.

"We believe that Oracle's offer is a good deal for Retek stockholders, and all directors in attendance at our board meeting have recommended that it be accepted," said Marty Leestma, the company's president and CEO, in a statement.

In prepared remarks, SAP chief executive Henning Kagermann stated that his company intends to exercise financial discipline in merger-and-acquisition transactions. "Neither our shareholders nor retail customers would benefit from an auction process that would further inflate the purchase price, and in the long run, not deliver the returns we demand," said Kagermann.

Earlier this month, Retek had agreed to be acquired by SAP for $8.50 per share before Oracle first launched its hostile bid.

The deal is one of several tech-related transactions in the news this week.

On Monday, IAC/InterActiveCorp., whose chairman and CEO is legendary media mogul Barry Diller, announced it would buy Internet search company Ask Jeeves in an all-stock deal valued at $1.85 billion.

And yesterday, a group of blue-chip buyout firms closed in on the purchase of SunGard Data Systems Inc., which provides software and processing services, for more than $10.5 billion, according to press reports. The firms reportedly include Silver Lake Partners, Kohlberg Kravis Roberts & Co., Bain Capital, Texas Pacific Group, Blackstone Group, Carlyle Group, and Thomas H. Lee Partners.




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