Posts Tagged ‘Art technologies’

Article from SFGate.

“Oracle Corp., the world’s second-largest softwaremaker, agreed to buy Art Technology Group Inc. for about $1 billion in cash to add e-commerce programs.

Art Technology investors will receive $6 per share, Oracle said in a statement Tuesday. That’s 46 percent more than the company’s closing price Monday.

Oracle, building on a run of more than 65 acquisitions during the past five years, is looking to purchase makers of industry-specific software, Chief Executive Officer Larry Ellison said in September. Art Technology of Cambridge, Mass., provides companies such as retailers with technology for online merchandising, marketing, automated recommendations and live-help services.

Oracle, which trails Microsoft Corp. in software sales, had $23.6 billion in cash and short-term investments as of Aug. 31, the end of its fiscal first quarter. Art Technology is the ninth acquisition Oracle has announced in 2010.

The deal price is 33 times earnings before interest, tax, depreciation and amortization, compared with the median multiple of 17 times EBITDA for similar deals in the past six years, according to Bloomberg data.

Art filed for its initial public offering in May 1999, as investors backed startups in the growing market of Internet advertising. Its shares hit a high of $122 in July 2000. Less than a year later, the dot-com bubble burst and the company faced four consecutive years of sales declines through 2004. Its shares plummeted 95 percent in that time period.

Oracle, along with competitors Hewlett-Packard Co. and IBM Corp., are acquiring companies as they bolster their offerings of corporate software and technology within data centers. HP has announced eight deals so far this year, and IBM has announced 15.

This year, Oracle completed its purchase of Sun Microsystems Inc. for $7.4 billion, positioning itself to compete against HP and IBM in the server-computer market. Ellison said in September he’s also on the hunt to purchase semiconductor companies, aiming to follow the approach of Apple Inc. by owning more of the intellectual property behind computer chips.”

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