Oracle to acquire ATG for $1b
The deal is likely to be complete in early 2011
ATG, provider of eCommerce software and on-demand commerce optimisation applications, has announced that it will be acquired by Oracle for $6 per share in cash, which tallies up to around $1billion.
The deal is expected to be completed in early 2011.
ATG's eCommerce software platform is a top-ranked cross-channel commerce solution, according to the company's statement and is highly complementary to Oracle's CRM, ERP, Retail, and Supply Chain applications, as well as its portfolio of middleware and business intelligence technologies.
"Bringing together the complementary technologies and products from Oracle and ATG will enable the delivery of next-generation, unified cross-channel commerce and CRM," said Thomas Kurian, executive vice president Oracle Development.
Bob Burke, president and CEO, ATG said that more than 1,000 global enterprises rely on ATG's solutions to help increase the value of their online customer interactions.
"This combination will enhance the ability to bring all their commerce activities together - creating a more consistent and relevant experience for their customers across all interaction channels, including online, in stores, via mobile devices and with call centers," he added.
Oracle Global Business Units' executive vice president Bob Weiler said that the addition of the company to their portfolio furthers their ability to deliver industry-specific enterprise applications. Oracle's bid for ATG is 46% higher than the value of the company's share price of $4.10 at closing on NASDAQ.
"This acquisition builds upon our dedication to offer the most complete and integrated suite of best-of-breed software applications and technologies required to power the most demanding companies in the world in every industry," said Weiler.
ATG's revenue for the third quarter of 2010 grew to $50.3 million, a 16% increase over third quarter 2009 revenue of $43.4 million.