dcsimg
RealTime IT News

Oracle-Siebel a Done Deal

Oracle today said shareholders have accepted its $5.85 billion cash bid for Siebel Systems, making the company the top dog in the market for customer relationship management (CRM) software.

Siebel stockholders who asked to receive Oracle stock will receive a combination of stock and cash because the stock portion of the consideration was oversubscribed, according to an Oracle statement.

Siebel stockholders who did not opt for Oracle stock will receive $10.66 per share in cash. Oracle will then repurchase shares in the market equal to the amount issued, making it a cash transaction.

The cash and stock payable to the electing holders will be announced Feb. 2.

"Oracle is now the undisputed leader in customer relationship management software," said Oracle CEO Larry Ellison in a statement. "Oracle's focus on modern, standards-based applications and middleware is moving us into a leadership position in applications and on-demand services. Siebel accelerates that move."

Oracle's path to Siebel was essentially cleared in December when the notoriously tough European Commission (EC) gave the merger its blessing, noting that an Oracle-Siebel merger wouldn't impede effective competition in its member countries.

Oracle, which has been acquiring applications vendors at a rapid rate the last few years to better compete with German giant SAP, said the Siebel CRM applications will become the centerpiece of its Fusion applications strategy.

Fusion is Oracle's plan to use its software infrastructure, such as database and application servers in conjunction with its application suites, to provide customers with a complete service-oriented architecture (SOA).

Oracle will host a conference call on Feb. 9, to discuss preliminary guidance for the combined companies.