Micros Systems To Be Acquired By Oracle Corporation

Micros Systems To Be Acquired By Oracle Corporation

Oracle Corporation is set to acquire a manufacturer of software for restaurants and other hospitality providers for $5.3 billion. The deal to acquire Micros Systems is the biggest deal the tech giant has stuck in the last five years.

The deal will require the US-based multinational computer tech company to pay $68 for every share of Micros Systems. The price is around 18 percent higher than share prices of the company before reports of the upcoming acquisition reached the media.

The last sixteen months has seen Oracle Corporation announcing 11 takeovers, making it the company with the most number of announced acquisition plans in the corporate world. However, the upcoming plan to acquire Micros Systems is the biggest takeover of the company since the acquisition of Sun Microsystems in 2009 for $7.4 billion.

The tech giant will have control of a major supplier of point-of-sale or POS systems with the acquisition of Micros. These POS systems include web-linked cash registers. The products of Micros are reportedly being used in around 330,000 sites located in 180 countries around the world.

Oracle president Mark Hurd revealed that the company was successful in providing cloud, social, mobile, and big data services to numerous customers around the world, allowing them to make innovations in their business. The acquisition of Micros will allow the company to deliver undeniable advantages to companies in the retail and hospitality industries, Hurd added.

The announcement of plans to acquire Micros Systems follows a move by the company to solidify its sluggish earnings growth. Profit of the company dropped by around four percent as indicated on its last fiscal quarter report even as revenues have increased by three percent.

The pro forma earnings of Oracle Corporation is expected to increased with the acquisition of Micros, which is expected to be finalized before the end of the year.

Posted by James Fried on Wednesday June 25 2014, 4:00 AM EST. Ref: NY Times. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0