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.

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