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Oracle makes Sun-sized $5bn grab for Micros Systems
Deal has 'compelling advantages' says Oracle prez
Oracle is buying systems maker and consulting shop Micros Systems for $5.3bn to counteract the slowdown in its hardware and software business.
The giant Monday confirmed reports it is buying Micros, which builds and delivers integrated systems including point of sale systems for the retail and hospitality sectors.
Oracle reckoned the deal extends its offerings in these areas by combining the Micros products with Oracle’s business applications, technologies and cloud portfolio.
Oracle president Mark Hurd said in a statement: “We anticipate delivering compelling advantages to companies within the hospitality and retail industries with the acquisition of Micros.”
Never heard of Micros? How about Sun Microsystems or PeopleSoft? The Micros deal is valued at $5.3bn, or $4.6bn net of Micros' cash.
The amount Oracle is paying puts it in the same ballpark as these two earlier Oracle deals.
Oracle spent $7.4bn on the once mighty Sun and found $10bn in loose change for PeopleSoft.
Both were flagship deals for Oracle, the former a knock-down price for a struggling systems giant that gave Oracle ownership of Java and of some not inconsiderable hardware assets.
The latter gave Oracle chief executive Larry Ellison ownership of massive CRM franchise and customer base.
Established in 1977, Micros customers include TGI Friday’s, Pizza Hut and OMNI Hotels. Micros claims its systems are running on 330,000 sites in 180 countries.
The company wrangles code in workflows, web, front and back office to deliver apps, internet IPTV, call centers and kiosks.
Oracle's purchase follows last week’s disappointing results that confirmed both new sales of its software and hardware are struggling. Year on year fourth-quarter new software licenses saw zero growth while new hardware was up just two per cent. ®