Oracle reportedly nearing $5 billion-plus deal to buy Micros Systems

Tech giant Oracle of Redwood City, which has been snapping up a number of so-called cloud or Internet-based product companies, reportedly is close to buying  Micros Systems for more than $5 billion.

Oracle spokeswoman Deborah Hellinger declined comment.

The reports from Bloomberg and other media outlets said officials at Oracle and the Columbia, Maryland company are talking about such a deal, but that it’s not clear an agreement will be reached. Micros – which provides software for hotels, restaurants and retailers – was nearly bought by Oracle six years ago, Bloomberg reported.

If Oracle purchases the company, “this would be the largest deal that Oracle has done,” since it bought Sun Microsystems in 2010 for $7.4 billion, according to a note Wells Fargo Securities analysts sent their clients.

They said the deal makes sense for a variety of reasons, including the fact that the hospitality market is big and the reported price would provide Oracle with “solid high-single-digit revenue growth.”

Analysts with FBR Capital Markets also endorsed the deal and added, “we believe this could kick off the next ‘arms race in the cloud,’ specifically in ecommerce.”  With several tech companies sitting on what the analysts called “large piles of cash” and a copycat mentality governing the industry, they added, “Oracle closing on Micros could touch off a wave of software M&A.”

FBR’s experts cautioned, however, that Oracle might not have an exclusive run at Micros.

“We would not be surprised to see one of Oracle’s main competitors off a higher bid, even if to simply drive the final price higher for Oracle,” they said, noting that IBM and SAP were “the most likely candidates” to also offer to buy Micros.

Photo by Pat Tehan,

Steve Johnson Steve Johnson (261 Posts)

Steve Johnson covers the microchip industry, cyber security and the big-technology sector that includes Hewlett-Packard, Oracle and Cisco Systems.