MICROS Systems, Inc. (NASDAQ:MCRS) has revealed on Monday that it has agreed to be bought by Oracle Corporation (NYSE:ORCL) for approximately $5.3 billion.
Oracle Corporation (NYSE:ORCL) will be paying $68.00 for each share of common stock that a MICROS Systems, Inc. (NASDAQ:MCRS) shareholder owns.
The deal is Oracle’s biggest acquisition in five years after it bought Sun Microsystems for about $7.4 billion in 2009. The deal follows disappointing fourth-quarter performance for Oracle after it reported an adjusted earnings-per-share of $0.92 on Thursday. Analysts were expecting an EPS of $0.95.
According to MICROS Systems, Inc. (NASDAQ:MCRS), a maker of software for businesses in the hospitality industry, its Board of Directors has unanimously approved of the acquisition. Furthermore, the company said that Oracle Corporation (NYSE:ORCL) will likely complete the deal in the second half of this year.
Commenting on the acquisition, Oracle Corporation (NYSE:ORCL) President Mark Hurd said:
“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.”
Meanwhile, MICROS Systems, Inc. (NASDAQ:MCRS) CEO Peter Altabef commented:
“MICROS has been focused on helping the world’s leading brands in our target markets since we were founded in 1977, including running more than 330,000 sites across 180 countries today. 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.”
According to Oracle President and CFO Safra Catz, the acquisition is expected to immediately add to Oracle’s pro forma earnings.
Shareholders in Lee Munder Oracle Corporation (NYSE:ORCL) includes Lee Munder’s Lee Munder Capital Group which reported 231,450 shares in the company as of the end of the first quarter. Another hedge fund with a position in the company is Clint Carlson’s Carlson Capital which had 186,500 in the company during the same period.
Meanwhile, MICROS Systems, Inc. (NASDAQ:MCRS) shareholders includes Robert Joseph Caruso’s Select Equity Group which reported about 3.42 million shares in the company by the end of March. Another shareholder is Jeffrey Ubben’s Valueact Capital which reported about 2.27 million shares in the company by the end of the first quarter of the year.