Oracle Agrees to Acquire Hyperion for $3.3 Billion (Update3)

By Ville Heiskanen

March 1 (Bloomberg) -- Oracle Corp., the world\'s third- largest software company, agreed to buy Hyperion Solutions Corp. for $3.3 billion in cash to add programs that help companies analyze their performance.

Hyperion investors will get $52 a share, Redwood City, California-based Oracle said in a statement today. That is 21 percent more than Santa Clara, California-based Hyperion\'s closing price of $42.84 yesterday.

The purchase furthers Oracle Chief Executive Officer Larry Ellison\'s efforts to sell more software to customers of SAP AG, his larger rival in the market for business-management software. Oracle has spent about $20 billion on acquisitions since 2004, including buying PeopleSoft Inc. and Siebel Systems Inc.

``This deal is what you do when you can\'t grow organically rapidly enough,\'\' said Richard Williams, director of research at ICAP in Jersey City, New Jersey. He is reviewing his ``sell\'\' rating on Oracle shares and doesn\'t own any. ``Hyperion has a very fine suite of analytic solutions.\'\'

Hyperion shares had gained 19 percent this year before today and surged 21 percent to $51.76 at 9:33 a.m. New York time in Nasdaq Stock Market trading today. Shares of Business Objects SA and Cognos Inc., Hyperion\'s larger competitors in the market for so-called business intelligence software, dropped as the purchase reduced the companies\' chances of being bought.

Shares of Oracle declined 43 cents, or 2.6 percent, to $16 in Nasdaq trading. Shares of SAP, based in Walldorf, Germany, slipped as much as 2.2 percent in Frankfurt.

Analyzing Data

Excluding some costs, the purchase will boost earnings per share by at least 1 cent in fiscal year 2008 and by at least 4 cents in fiscal 2009, Oracle said. On a GAAP basis, the purchase will be ``modestly dilutive\'\' in 2008, before starting to contribute to earnings, Chief Financial Officer Safra Catz said on a conference call.

Hyperion\'s software takes data gathered by business- management programs and provides analysis to help managers monitor whether a company is meeting its goals. Oracle said the acquisition will allow it to offer a complete system for planning, budgeting, analyzing and reporting data.

Oracle will reap cost savings as the companies target the same customers, Catz said. Hyperion has fewer products in common with Oracle than Siebel and PeopleSoft had, she said.

``We have virtually no overlap with these folks,\'\' Catz said. ``We should be up and running very quickly.\'\'

Competitors Drop

Shares of Business Objects, which is based in San Jose, California, and Levallois-Perret, France, dropped as much as 6.8 percent in Paris. Societe Generale analyst Stefan Slowinksi said in a note from London today that the purchase of Hyperion by Oracle leaves no logical buyer for Business Objects, except SAP.

``SAP will likely remain frozen like `a deer in the headlights\' as Oracle continues to purchase premium properties in the software space,\'\' Slowinski said.

Shares of Ottawa-based Cognos, the No. 2 maker of corporate- analysis software behind Business Objects, fell as much as 2.9 percent in Nasdaq trading. They advanced 22 percent last year on speculation the company would be taken over by a larger software maker such as Oracle.

Hyperion has about 12,000 customers. The company reported second-quarter earnings in January that topped analysts\' estimates as it won orders from BT Group Plc, New York University and RadioShack Corp. Revenue is expected to jump to as much as $895 million this year, Hyperion said at that time.

Oracle is the second-largest maker of business-management software behind SAP. Microsoft Corp. and International Business Machines Corp. rank ahead of Oracle in global software sales.

http://www.bloomberg.com/apps/news?pid=20601103&sid=a0fXuXn._0kU&refer=us


don\'t know what this means yet exactly, but i\'m gonna have to work on my resume a bit.

just when you think you\'ve got it all sussed out...

gonna be a weird one today.

sorry about your situation, dave.  There\'s always a spot for you in teaching - great benefits, too!

IF YOU VALUE FINANCIAL SECURITY, STAY THE HELL AWAY FROM THE MUSIC BUSINESS!

seriously.

well hey, lucky for me i\'m not talented.

i\'m taking it you don\'t have stock options....

i\'m taking it you don\'t have stock options....

currently a sore subject.

Dave-I know today may not be great, but I\'m sure things will work out. You are obviously very talented at what you do, and in your field I can\'t imagine you not being able to find something, maybe even better with a shorter commute.

This could be the best thing that ever happened to you.  Seriously.  I change jobs all the time.  Of course, I am a souless mercenary of an employee, but hey so far it\'s worked out.  I went from working as a banker to selling helicopters :idunno:

Do Not Underestimate Your Market Value

I\'m happy where I am right now, but I\'ve still been looking (why? b/c I\'m always looking).  I actually stumbled upon something that might suit you (depends, I only have a loose understanding of what you do) .  If the **** hits the fan PM me and I\'ll break it down for you.

am i the only dickhead that doesnt understand what any of this means??
sorry

Condensed version.  Dave\'s company is getting bought out. Often when this type of situation occurs, layoffs result for the purchased company.  It would be like if 2 bands merged.  They could keep two drummers, but it\'s likely one would have to go.  The article stated there would be little overlap, so I like Dave\'s chances.

BTW- SAP can lick my nuts.