Oracle Letter Proposes to Buy BEA Systems for $17.00 per Share in Cash
REDWOOD SHORES, Calif., 12-OCT-2007 03:30 AM Oracle Corporation (NASDAQ: ORCL) today confirmed that it delivered a letter to the Board of Directors of BEA Systems, Inc. (NASDAQ: BEAS) on October 9 in which Oracle proposes to acquire BEA for $17.00 per share in cash. The $17.00 per share offer is a 25% premium over yesterday’s closing price of $13.62.
The letter indicates that Oracle is prepared to proceed immediately to a process that leads to a definitive agreement. “We have made a serious proposal including a substantial premium for BEA,” said Oracle President Charles Phillips. “We believe our all cash offer provides the best value for BEA’s shareholders and the best home for BEA’s employees and customers. This proposal is the culmination of repeated conversations with BEA’s management over the last several years. We look forward to completing a friendly transaction as soon as possible.”
“We intend to protect the investment customers have made in BEA’s products by supporting those customers and products for years to come,” Phillips continued. “Our continuing support commitment has been amply demonstrated with all of our previous acquisitions, including PeopleSoft and Siebel. BEA will be no different. The acquisition of BEA by Oracle will enable an increase in engineering resources that will in-turn accelerate the development of our world-class suite of middleware. Both Oracle and BEA customers will benefit from this increase in engineering investment as they migrate to modern SOA technologies.”
Oracle buys BEA for $8.5 billion
Business software maker BEA Systems Inc (BEAS.O) has agreed to be acquired by Oracle Corp (ORCL.O) for $8.5 billion, the companies said on Wednesday.
Oracle will pay $19.375 per share, a premium to its offer last year of $17 per share, which BEA had rejected as too low. At the time, BEA said it was worth $21 a share and said it was willing to talk to potential buyers, though none emerged.
Oracle said the deal, valued at $7.2 billion net of cash on hand of $1.3 billion, would increase its adjusted earnings per share by at least 1 cent to 2 cents in the first full year after closing.”