Oracle Corporation to Acquire Hyperion Solutions for 4.31 Times Revenue

The Deal: Oracle Corporation has announced an agreement to acquire Hyperion Solutions Corporation through a cash tender offer of $52 per share, or approximately $3.3 billion. The companies expect the deal to close in April 2007, subject to customary closing conditions including regulatory approval.

Discussion: Hyperion Solutions develops and markets business intelligence software tools. Large corporations use Hyperion's applications to collect, distribute, and analyze data to identify sales trends, customer buying habits, and other business information. Hyperion software can be combined with other applications to manage supply chains and customer relationships.

Oracle Corporation provides a wide range of software tools for managing business data. Company products include databases and applications for customer relationship management, supply chain management, applications development, and data warehousing.

Oracle president Safra Catz stated that the acquisition of Hyperion would add at least one cent per share to Oracle's earnings in 2008 and at least four cents per share in 2009. The acquisition will also place Oracle in a stronger position to compete against business software rival SAP.

In recent years, Oracle has aggressively pursued acquisitions to enhance its product offerings. Previous acquisitions include PeopleSoft, Siebel Systems, and Portal Software.

Copyright NVST, Inc. Mar 12, 2007