Oracle has announced plans to buy CRM market leader Siebel Systems, for £5.83 per share. The offer is valued at approximately £3.2bn, or £1.98bn net of Siebel's cash on hand of £1.23bn.
"In a single step, Oracle becomes the number one CRM applications company in the world," said CEO Larry Ellison. "Siebel's 4,000 applications customers and 3,400,000 CRM users strengthen our number one position in applications in North America and move us closer to the number one position in applications globally."
Thomas Siebel, chairman of Siebel Systems said, "The combination of Siebel applications with the development capacity of Oracle to enhance our CRM product set assures our customers continuing success.”
Oracle said the merger was “customer driven,” with the majority of Siebel users using Oracle databases. Siebel’s products will be added to those of PeopleSoft and JD Edward in Project Fusion, Oracle’s bid to merge the product suites it has acquired from recent takeovers.
In addition to last December’s take over of PeopleSoft, which itself had recently acquired JD Edwards, in March Oracle beat SAP to acquire retail software market leader Retek.