Oracle buys BEA Systems

Oracle buys BEA Systems for

$6.7B, continuing software

consolidation

By Matt Marshall 10.12.07

Oracle said it would acquire software company BEA Systems for $6.7 billion, continuing its massive feast on other software companies over the past three years.

Oracle’s strategy has paid off — its stock price has revived, now
that company has absorbed something like 35 prey, for more than $28
billion (past coverage) We’d originally expressed skepticism that the strategy was working.

The purchase was made at $17 a share, a 25 percent premium over the
company’s current worth. In the early post-bubble years, BEA had been
one of Silicon Valley’s hottest companies. Its Web application servers
did well as business applications came online, but then it got squeezed big competitors moving to adapt.

One apparent beneficiary is Carl Ichan, who had taken a large 13
percent position in BEA, and would see a big profit if the deal goes
through.

Oracle announced two days ago it would buy LogicalApps.

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