Oracle is getting ready to buy a company called Micros Systems for more than $US5 billion,
sources told Bloomberg’s Alex Sherman and Dina Bass.
Micros makes software and hardware for the hospitality industries.
This would be Oracle’s largest acquisition since it bought Sun Microsystems for $US7.4 billion in 2010 (which really cost Oracle $US5.6 billion after it factored in Sun’s cash).
Oracle is one of the most acquisitive companies in the tech industry, having spent $US50 billion to acquire about 100 companies over the past 10 years, Bloomberg reports.
Still, the Micros Systems deal, should it proceed as reported, would be a big one for Oracle for several reasons.
Obviously, the size of the deal, at $US5 billion, makes it stand out. Micros Systems would also give Oracle a tablet. The company makes “point of sale” cash register software and hardware for the hospitality and retail industry. The latest wave in the POS industry is to replace these devices with tablets, and Micros offers a Windows tablet for this exact purpose.
Most importantly, it could give Oracle some much needed growth. Micros generated nearly $US1.3 billion in revenue in 2013 and $US171 million in net income.
On rumours of this acquisition, Micros System’s stock price has gone crazy. It’s up 17% to about $US67, when it had been trading near the $US58 mark for the past few days and under $US53 for most of April and much of May.
Oracle reports its fourth quarter earnings for fiscal 2014 on Thursday. If this acquisition is as close as it sounds, we will likely hear more about it then.
Oracle declined to comment on this story.