Oracle’s Deal Won’t Do Much for Its Cloud Computing Efforts
June 24, 2014
Grazed from NewYork Times. Author: Editorial Staff.
Oracle’s $5.3 billion deal for Micros Systems provides an uncertain forecast for shareholders in the database giant. Even if it’s the start of a new deal binge by Oracle’s chief, Lawrence J. Ellison, it’s not at a crazy valuation. But Mircos, a longtime partner, is more of an add-on than a way to supercharge Oracle’s effort in cloud computing.
Oracle is paying $68 a share in cash for the Micros, a maker of hotel and restaurant business technology systems. At a 24 percent premium to the undisturbed share price, it’s at about half the premium Priceline recently agreed to pay for the restaurant reservations site OpenTable, as one example…
The deal, Oracle’s biggest since its 2010 purchase of Sun Microsystems, values Micros at about 26 times forecast earnings for fiscal year 2015. That’s no rock-bottom price, but it’s also hardly egregious considering bubbly multiples elsewhere in tech land. Demandware, a cloud-based e-commerce competitor, for instance, trades on 1,400 times expected earnings…
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