Oracle Purchased BEA

In today's IT business world, the big fish seems to always end up with the smaller one in its belly, no matter how long the process takes. The last example is BEA's acquisition by Oracle, after an unsuccessful attempt that took place back in October. Let's find out more about this story, shall we?

Back in October, BEA turned down Oracle's offer of about $6.7 million, claiming the bid was too low. It took almost 3 months for Oracle to come with a better offer, but this time, BEA accepted the price put by Oracle on the table - no less than $8.5 million!

According to Trip Chowdhry, analyst at Global Equities Research, "It's a fair price. It's a good deal for Oracle. It's a good deal for BEA.", so everyone should be happy, including shareholders, since BEA's shares rose 19 percent on the Nasdaq, while Oracle's also took a slight rise in value, up to $21.43.

While Oracle also was producing "middleware" computer systems, BEA's Weblogic and International Business Machines Corp's WebSphere application servers are known as standards among this type of integration software, so now Oracle would have a lot to gain, but we should also take into account that, being given the global economical tendency, "Companies are more reluctant to buy from smaller companies in a recession because you have uncertainty.", according to Jefferies & Co's Katherine Egbert.