Oracle on Tuesday said it will acquire Art Technology Group for $1 billion in cash.
That price tag equates to $6 a share for Art Technology Group (ATG), which provides e-commerce software. ATG closed at $4.10 a share on Monday.
Oracle said the deal will close in early 2011. So what's the plan? Oracle plans to take ATG's e-commerce platform and align it with its various applications ranging from CRM to ERP to its retail and supply chain software. With ATG, Oracle will move to position its applications to being more about growing revenue.
ATG went public in 1999 and has made a serious of acquisitions every two years since 2004 to build out its portfolio. The company offers both on-premise and on-demand e-commerce software focused on verticals such as telecom, retail, manufacturing and financial services. Its flagship suite is ATG Commerce.
ATG also reported its third quarter earnings. The company reported net income of $4.2 million, or 3 cents a share, on revenue of $50.3 million, up 16 percent from a year ago.
Here are two screenshots to illustrate ATG's software.