NEW YORK (The Deal) -- Software giant Oracle (ORCL) said Monday it reached a $5.3 billion deal to acquire hospitality technology provider Micros Systems (MCRS), a move that will likely propel a wave of future deals in the e-commerce technology space.
Redwood City, Calif.-based Oracle said it would pay $68 per share for all outstanding shares of Micros, valuing its equity at approximately $5.3 billion, or $4.6 billion taking into account the target's cash balance.
At $68 per share, the deal represents a 17.8% premium over the target's $57.71 closing stock price on June 16, before reports that the two parties were in exclusive talks. The deal implies an enterprise value-to-revenue multiple of 3.1 times, based upon Micros' expected revenue for 2015.
Micros, of Columbia, MD., provides software and hardware including point-of-sale, property management and e-commerce services, mostly for the hospitality and retail industries. The company posted approximately $1 billion in revenue and $126 million in profit during the nine months ended March 31. It had a $583 million cash balance and no debt at that time.
Shares of Micros, which trade on the Nasdaq as MCRS, advanced 3.3%, to $67.94, Monday morning following the news.
"We believe this could kick off the next "arms race in the cloud," specifically in e-commerce," FBR Capital Markets analyst Daniel Ives wrote in a Monday note. "In our opinion the stage is set for massive consolidation as we continue to believe larger vendors will seek to acquire their way into more fertile growth areas of the tech food chain."