Oracle to buy BEA for $8.5 billion

Oracle has announced that it will acquire BEA Systems for $8.5 billion.

The business software giant will pay $19.375 per share for the company, with the deal expected to close mid-2008, subject to the usual approvals.

The two companies had previously discussed an acquisition but had been unable to agree on price.

Larry Ellison, CEO of Oracle commented: "The addition of BEA products and technology will significantly enhance and extend Oracle's Fusion middleware software suite. Oracle Fusion middleware has an open hot-pluggable architecture that allows customers the option of coupling BEA's WebLogic Java Server to virtually all the components of the Fusion software suite. That's just one example of how customers can choose among Oracle and BEA middleware products, knowing that those products will gracefully interoperate and be supported for years to come."

"Over the past several months our Board of Directors, with the assistance of independent financial and legal advisors, has reviewed various ways to maximize stockholder value, including engaging in discussions with third parties about a possible sale of the company," said Alfred Chuang, BEA's Chairman and CEO. "This transaction is the culmination of that diligent and thoughtful process, and we believe it is in the best interests of our shareholders. I am confident our innovative products, talented employees and worldwide customer base will be key contributors to the success of the combined company over the long term. We look forward to working with Oracle toward a successful completion of the transaction."