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Published on : Jun 18, 2014

Computer tech giant Oracle is reported in talks to purchase hotel chain and retail software-maker Micros. The deal is pegged at USD 5 billion, according to a report in Bloomberg that cited people close to the deal. Despite the fact that both companies are engaged in exclusive talks, there are chances that the deal may still not be finalized. Micros’ PoS software and hardware is used by hundreds of restaurants and hotels worldwide. There was no immediate confirmation of the deal from either Micros or Oracle.

However, according to a market analyst at FBR Capital Markets, Oracle’s competitors could make a higher bid to Micros, potentially driving up the price of the deal. According to analysts, the likelihood of a counter bid from key competitors such as SAP or IBM is being perceived as high. IBM’s WebSphere is an e-commerce platform for enterprises. 

If Oracle can finalize the deal, it will also counter threat from other SaaS e-commerce vendors such as NetSuite and Demandware , in the process.

Over the last few years, Oracle has been actively rolling out cloud-based products of its own. It has acquired a number of cloud-based companies - such as software manufacturer Responsys - that are smaller than it. More recently, the sales team at Oracle underwent reorganization so as to compete better with rivals such as Workkday, Salesforce, and SAP. Companies such as Salesforce, though smaller than Oracle, are more aggressive in their offerings with competitive pricing and innovative products. Oracle, which was founded 40 years ago, follows the strategy of integrating software with its indigenous hardware.

If the deal is confirmed, it would be largest acquisition by Oracle since its purchase of Sun Microsystems in 2009 for USD 5.6 billion.