Oracle feasts on ‘tuck-in’ deals

Giant to carry on buying smaller firms such as Sunopsis

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By  Published  October 20, 2006

Oracle’s capture of software firm Sunopsis this month emphasises its current strategy of buying smaller firms.

The purchase of Sunopsis which makes software for heterogeneous data integration came just days after Vishal Bhagwati, an Oracle vice president, said that the firm would focus on ‘tuck-in’ deals in the near future.

Bhagwati told Reuters that Oracle hoped to keep up an aggressive pace of closing three or four big deals every quarter, with acquisitions falling in the US$5million to US$100million range.

These smaller ‘tuck-in’ deals would expand the software maker’s offerings in the areas of security and business intelligence applications, said Bhagwati.

According to Oracle, Sunopsis was acquired specifically to enhance the Oracle Fusion Middleware line for its PeopleSoft products.

Terms of the deal were not disclosed.

Sunopsis offers products for data integration through its extract load transform (ELT) architecture and support for a broad range of data sources and target systems.

“We plan to incorporate Sunopsis’ high performance data integration technology into an Oracle Fusion Middleware product family and make the technology an integrated part of service-orientated architecture (SOA), business intelligence (BI) and master data management (MDM) solutions from Oracle,” said Thomas Kurian, senior vice president of Oracle Server Technologies.

He added that real time information access, next generation architectures and more mixed IT environments are driving requirements for heterogeneous data integration solutions.

Oracle has spent close to US$20billion over the past few years on pushing into the business software market and on developing and acquiring products to automate business processes.

The firm entered the business applications market under chief executive Larry Ellison and has pursued an aggressive acquisition strategy —including the takeovers of former rivals PeopleSoft and Siebel Systems.

Having achieved considerable success in this market Bhagwati said Oracle was not planning to rest on its laurels in what is currently a tough sellers market.

“It’s a pretty brisk mergers-and-acquisitions market right now,” he explained.

“Every software company is on the horizon,” he added.

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