Press release by 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."
If I did not know anything about acquisitions, I would think that this is Larry Ellison's reaction to the Business Objects acquisition
by arch rival SAP (don't get mad.... get even). But as these
acquisitions and offers usually take quite a long preparation time, I do
not think this is a reaction to the SAP activities.
wondering though what the rationale is for Oracle to make the offer for
BEA. Oracle states in its press release that "the acquisition of BEA by
Oracle will enable an increase in engineering resources that will
in-turn accelerate the development of our [Oracle's, LB - sic]
world-class suite of middleware". Which might mean that Oracle is facing
some challenges, maybe even problems with its current Project Fusion
program. Putting it all together is one of the key challenges Oracle
faces in its Fusion endeavor, and the acquisition of the brightest
engineers from BEA could be considered a way to face this challenge.
This should not come as a surprise as I have said before that one of the key drivers for Oracle's acquisition wave was "acquiring the people who created the technology".
Also, the potential acquisition of BEA supports my prediction and observation
that increasingly pure-play vendors are disappearing, as the
functionality of their products is incorporated into enterprise
applications, OS and hardware.
Maybe this is the moment to say: integration middleware is now officially commoditized.