Oracle buys Hyperion for $3.3bn
Published: 01 Mar 2007 15:26 GMT
Oracle announced on Thursday that it has agreed to buy Hyperion Solutions for $3.3bn (£1.7bn), in a move to expand in the area of performance management systems.
The acquisition is yet another multibillion-dollar deal in recent years for Oracle, which has shown a hunger for expanding quickly via mergers. The software maker acquired customer relationship management software maker Siebel Systems for $5.85bn last year and archrival PeopleSoft for $10.3bn in 2005.
While the PeopleSoft and Siebel acquisitions had product overlap to varying degrees with Oracle's existing business, the Hyperion deal is expected to have little redundancy, Oracle executives said in a conference call with analysts.
Hyperion sells business intelligence tools and financial applications to corporations. The company's software is used to analyse business data, such as sales history, and for financial planning and budgeting.
It also provides "dashboards" or applications for that visually represent how a company is performing on a set of measurements, such as improving customer response time or meeting a sales objective.
Oracle, too, provides business intelligence tools, but company watchers have expected it to make a large acquisition of a standalone business intelligence vendor to fill out its product line. "The acquisition of Hyperion makes Oracle the category leader in the high-growth enterprise performance management market," Larry Ellison, Oracle's chief executive, said in a statement.
Oracle plans to team up Hyperion's EPM software with its own Business Intelligence tools and analytic applications, creating an expanded performance management system that includes planning, budgeting, consolidation, operational analytics and compliance reporting.
The deal, set to close in April, is expected to generate an additional 1 cent per share to Oracle's non-GAAP earnings in fiscal 2008 and at least 4 cents per share in 2009.
Under the cash transaction, Oracle plans to pay $52 per share for every share of Hyperion's common stock.
Oracle is also using the Hyperion acquisition to take aim at rival SAP, a leading maker of software for enterprise resource management.
"Thousands of SAP customers rely on Hyperion as their financial consolidation, analysis and reporting system of record," Charles Phillips, Oracle president, said in a statement. "Now Oracle's Hyperion software will be the lens through which SAP's most important customers view and analyse their underlying SAP ERP data."
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