By Margaret Kane, 12 September 2005 15:25
NEWS Software maker Oracle has agreed to acquire competitor Siebel Systems in a deal worth around $5.8bn, the companies said on Monday.
Siebel makes software for handling customer relationship management, or CRM. Oracle said its acquisition will add 4,000 customers and 3.4 million CRM users.
Oracle will offer $10.66 for each share of Siebel stock, a nearly 17 per cent premium over the company's $9.13 closing price on Friday.
Siebel has been a subject of takeover rumours for a while, particularly since the departure of CEO Mike Lawrie. Oracle CEO Larry Ellison included the company in a list of takeover targets during Oracle's contentious battle over the acquisition of PeopleSoft.
Ellison said in a statement on Monday that the addition of Siebel's customers will "strengthen our number one position in applications in north America and move us closer to the number one position in applications globally".
Oracle's purchase of Siebel comes roughly a year after a federal judge cleared the way for the software maker to buy rival PeopleSoft in a deal worth more than $10bn.
Oracle completed the acquisition of PeopleSoft in January, and has since made three additional deals.
In April, the company purchased retail software maker Retek for slightly less than $500m. In early July, Oracle bought pricing specialist ProfitLogic for an undisclosed sum. And last month, Oracle took a $650m stake in Indian banking software maker I-flex Solutions.
Margaret Kane writes for CNET News.com
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