
Oracle (Nasdaq: ORCL) announced it wants to acquire BEA Systems (Nasdaq: BEAS) , a provider of Web-based business productivity and integration software, for US$6.7 billion, or $17 per share in cash. BEA has already rejected the offer, according to news accounts, saying that Oracle's bid seriously undervalues the company's overall worth.
The market apparently shares that view, despite BEA's lackluster sales and declining profits. After the news was announced, BEA stock prices jumped almost 40 percent to $18.56, exceeding the offer bid.
Still, the offer implied a hefty premium given BEA's lackluster performance recently, said Brad Adams, vice president at Boston Corporate Finance. "Seventeen dollars is a 25 percent premium over what BEA stock closed at on Thursday and it implies a hefty valuation," he told CRM Buyer.
Oracle president Chuck Phillips noted as much when announcing the offer. "We have made a serious proposal including a substantial premium for BEA," he stated. "We look forward to completing a friendly transaction as soon as possible."
If this takeover is successful, Oracle's acquisition body count will have reached into the mid 30s. What is unusual about this particular deal is that Oracle announced its intentions before the deal was closed.
It may regret that, Adams said, as the announcement is sure to attract other suitors for BEA. HP (NYSE: HPQ) , for instance, is considered to be a likely candidate, as is IBM (NYSE: IBM) and SAP (NYSE: SAP) .
However, it may be that Oracle had an ulterior motive by announcing its plans. "I think it wanted to take the wind out of SAP's sails, after its announcement this week that it would acquire Business Objects," Adams said. "It is very much in your face with SAP -- which is typical of Larry (Ellison)'s style."
This week, SAP announced it would acquire Business Objects for about $6.78 billion. A French provider of business intelligence software, it was one of the few assets on the market able to go head to head with Hyperion, which had been acquired by Oracle for $3.3 billion. It was SAP's largest acquisition to date as the firm typically adopts a build versus buy strategy for new functionality.
However, as the competition between the two vendors intensifies it may be that that is changing. Another viable contender for BEA, for instance, is in fact SAP, which could also benefit from BEA's technology.
" So, if this deal goes through, instead of us customizing the integration for customers, it will be repackaged to plug right into the Fusion middleware."Scott Salomon, president of Three Dimensional Resource Planning
Whither Fusion
Leaving aside the politics, personalities and market maneuvering, BEA's technology would fit nicely in Oracle's product line up and database platform. "Oracle has been making huge forays into SOA (service-oriented architecture)-based technology," Adams said. "Also, Oracle has acquired Fuego, a business process management vendor, which gave Oracle a BPM application that is heavily oriented in the SOA framework. That fits perfectly with BEA's strategy."
The larger question is how BEA will fit in with Oracle's Fusion middleware strategy of bringing together its multiple acquisition. If the acquisition were to go through, it would no doubt accelerate Fusion's development, Roger Kay, president of Endpoint Technologies Associates, told CRM Buyer.
"Oracle wouldn't be spending that kind of money if it didn't think it could bring products to market faster and hopefully cheaper," he said.
Also, Fusion is a key piece of Oracle's larger strategy and any acquisition is vetted for how it would fit in, he said.
Scott Salomon, president of Three Dimensional Resource Planning, a national Oracle partner, also agreed that the BEA acquisition would facilitate Fusion.
"We are integrating BEA's technology into Oracle right now anyway," he told CRM Buyer. "So, if this deal goes through, instead of us customizing the integration for customers, it will be repackaged to plug right into the Fusion middleware."
Oracle is a registered trademark of Oracle Corporation and/or its affiliates.
Three Dimensional Resource Planning (3RP) Taps Local PR Firm to Drive Education on Oracle® Applications and Technology Products
Scottsdale Company Takes Steps to Educate Arizona Businesses on Advanced Enterprise Resource Planning . 3RP Co., (Three Dimensional Resource Planning) (www.3rp.com), a Certified Partner in the Oracle® PartnerNetwork, is taking active measures to help educate businesses in Arizona on the latest ERP related issues and Oracle applications and technology products. The company is launching a series of educational events including breakfast seminars, executive summits and joint events with local technology and business organizations such as the AZ Technology Council beginning this fall.
Scottsdale, Ariz. (PRWEB) September 4, 2007 -- 3RP Co., (Three Dimensional Resource Planning) (www.3rp.com), a Certified Partner in the Oracle® PartnerNetwork, is taking active measures to help educate businesses in Arizona on the latest ERP related issues and Oracle applications and technology products. The company is launching a series of educational events including breakfast seminars, executive summits and joint events with local technology and business organizations such as the AZ Technology Council beginning this fall.
ANGLES PR of Chandler, AZ was hired to spearhead the public relations efforts that will drive regional awareness for 3RP's tailored services in Oracle technology and Oracle applications environments.
3RP combines all three facets of traditional enterprise resource planning in one. According to Scott Salomon, President of 3RP Co. "The three dimensions of the enterprise wide implementation are: software, consulting and on going support for our implementations, or what we call Managed Services. We are redefining the industry and giving our customers 3RP, not just ERP."
From functional consulting, application development, database management, functional help desk, 3RP provides comprehensive and balanced solutions including:
ANGLES PR was hired because of the firm's successful track record with fast-growing B2B focused businesses. Past and current B2B clients include companies in the business finance, interactive marketing, web development, and sales training industries.
Oracle PartnerNetwork is a global business network of more than 19,500 companies who deliver innovative software solutions based on Oracle software. Through access to Oracle's premier products, education, technical services, marketing and sales support, the Oracle PartnerNetwork program provides partners with the resources they need to be successful in today's global economy. Oracle partners are able to offer their customers leading-edge solutions backed by Oracle's position as the world's largest enterprise software company. Partners who are able to demonstrate superior product knowledge, technical expertise and a commitment to doing business with Oracle qualify for the Certified Partner levels. http://oraclepartnernetwork.oracle.com
Based in Scottsdale, AZ 3RP Co. is a Certified Partner in the Oracle PartnerNetwork providing comprehensive and balanced solutions for its clients. 3RP is the most advanced provider of enterprise resource planning (ERP). The Company combines all three facets of ERP in one. The three dimensions of the enterprise wide technology implementation are software, consulting, and Managed Services for functional support and Database Management.
Coining the term "3RP" as a new industry standard, the Company provides world-class Oracle consultants that exceed the highest qualifications in the industry to ensure that the Company's clients' receive unparalleled Oracle support and Oracle consulting services.
For additional information please visit online at www.3rp.com or call 480-362-1776 x301
With offices in Tempe, Ariz. ANGLES PR is a communications firm with a strong focus on media relations, strategic alliances and community outreach. The firm works with growth oriented businesses in both B2B and B2C arenas. ANGLES PR is dedicated to community service and is a supporter of NAWBO, ASBA, Invest Southwest 2007, Maggie's Place, Chandler Leadership Institute and Ballet Arizona. For additional information visit online at www.anglespr.com
Oracle is a registered trademark of Oracle Corporation and/or its affiliates.
Scottsdale, AZ. 3RP announced that it recently joined APC's Silver Certified Partner Program. As a result of its recent certification, 3RP's technical sales professionals now possess thorough knowledge of how to design and implement network-critical physical infrastructure solutions for its customers using APC's online configuration tools. 3RP's certified professionals now can design APC InfraStruXure systems up to 160kW, which now gives the firm the ability to provide its customers with APC's popular InfraStruXure architecture for data centers. This partnership allows the firm to provide it's customers the higher levels of discounting on APC solutions.
APC's InfraStruXure is an on-demand architecture for network-critical physical infrastructure (NCPI). The InfraStruXure design, which integrates power, cooling, rack, management and services, allows the selection of standardized components to create a data center solution through modular and mobile configurations. This standardization enables an easily scalable architecture designed to meet changing needs and future expansion. This award-winning, patent-pending approach provides increased availability, improved adaptability and speed of deployment as well as lower total cost of ownership for IT environments - from wiring closets to server rooms to data centers.
"We are delighted to receive APC Silver Certified Partner status, which, we believe, will benefit our customers immensely," said Scott Salomon, President and Chief Sales Officers. "Now 3RP can offer its customers access to APC's innovative InfraStruXure solution for data centers, which offers companies a scalable, "pay as you grow" approach to building a state of the art data center. InfraStruXure allows our customers to dramatically increase their IT system availability, improve adaptability, speed deployment and lower total cost of ownership. As a result of our partnership with APC, our customers also receive peace of mind knowing that Three Dimensional Resource Planning is certified to design, implement and service APC InfraStruXure solutions. This expands our core business offerings with other mission critical solutions from Oracle, NetApp, ADIC, and Symantec."
3RP co. is an Oracle Applications and Technology partner with Oracle Certified Partner status and expands its portfolio to include the Oracle® E-Business Suite and Special Edition product line for Oracle applications.
For more information on Three Dimensional Resource Planning, LLC (3RP) please email Sales@3RPco.com or call Scott Salomon at 480.362.1776.
Scottsdale Arizona. Local Oracle Partner Three Dimensional Resource Planning (3RP) has been designated an Oracle Certified partner. The certification from Oracle is only awarded to Partners who obtain and achieve the highest level of competency in Oracle Technology. 3RP current staff consists of more then 10 Certified Oracle Professionals.