Oracle Gets BEA After All

The deal is worth more than the original bid, but it's still below what BEA had said it wanted.
Publish date:


This time,


(ORCL) - Get Report

got its way.

Just months after its $17-a-share offer for fellow software maker

BEA Systems


was rejected as too low, the target company has been convinced to be acquired in a sweetened deal.

Oracle said Wednesday it will buy BEA for about $19.38 a share in cash, or roughly $8.5 billion overall. While that's below the $21 BEA said last year that it wanted, it does surpass Oracle's original bid.

"The addition of BEA products and technology will significantly enhance and extend Oracle's Fusion middleware software suite," said Oracle CEO Larry Ellison, in a prepared statement.

Alfred Chuang, BEA's chairman and CEO, said the transaction was reached at the end of a "diligent and thoughtful process, and we believe it is in the best interests of our shareholders."

Oracle expects the acquisition to add at least 1 cent to 2 cents to its adjusted earnings in the first full year after the deal closes, which should happen by midyear.

Shares of Oracle were slipping 1.8% to $20.92 in premarket trading. At the same time, BEA was surging 19% to $18.56.