Demand for the enterprise software developer is high after it announced it accepted an acquisition offer from Oracle (ORCL). The software giant will acquire Responsys for $1.5 billion, or $27 a share, in an all-cash offer. The price is at a 38.3% premium to the company's Thursday close of $19.52.
The addition of Responsys adds cloud marketing expertise to Oracle's operation, the companies said in a statement. The acquisition will allow the latter to extend operations to better serve its business-to-consumer and business-to-business software offerings.
"The Oracle Marketing Cloud is now the only platform to unite enterprise-class leaders in these historically distinct marketing-automation fields," said Oracle President Mark Hurd in a statement.
The deal has been approved by both boards and is expected to close in the first half of 2014.
Despite the acquisition, TheStreet Ratings team rates RESPONSYS INC as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate RESPONSYS INC (MKTG) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."