Oracle buys MICROS Systems for $5.3 billion

Summary:Oracle has acquired MICROS Systems for $5.3bn in order to break into the hospitality and retail industries.

Oracle has agreed to purchase retail software and hardware solutions firm MICROS Systems for $5.3 billion.

Screen Shot 2014-06-23 at 13.05.37

The tech giant will pay $68 per share in cash, which values the acquisition at approximately $5.3 billion.

MICROS Systems provides enterprise services for players within the hospitality and retail industries, including management software, hardware, cloud services and scalable point-of-sale solutions. The Columbia, Maryland-based company was founded in 1977, and assists in the operation of more than 330,000 sites in 180 countries to date.

"Oracle has successfully helped customers across multiple industries harness the power of cloud, mobile, social, big data and the internet of things to transform their businesses," said Oracle President Mark Hurd in prepared remarks. "We anticipate delivering compelling advantages to companies within the hospitality and retail industries with the acquisition of MICROS."

Oracle says the addition of MICROS will extend the firm's offerings in hospitality and retail, and will allow the database giant to secure a stronger foothold in industries where there is room for technological expansion. In a research note, FBR Capital Markets said Oracle needs to "go on the deal warpath" in these types of industries to capitalize on an emerging demand for technology and in order to improve its profit margins.

Oracle President and CFO Safra Catz said the firm expects the buyout to be "immediately accretive to Oracle's earnings" — on a non-GAPP basis — and to rise in profitability over time. Now approved unanimously by MICROS shareholders, the transaction will close in the second half of 2014, subject to regulatory approval.

The buyout is the largest acquisition Oracle has made since the purchase of Sun Microsystems in 2010 for over $7 billion.

Topics: Oracle

About

Charlie Osborne, a medical anthropologist who studied at the University of Kent, UK, is a journalist, freelance photographer and former teacher. She has spent years travelling and working across Europe and the Middle East as a teacher, and has been involved in the running of businesses ranging from media and events to B2B sales. Charli... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.