News Byte: Oracle to Buy Responsys for $1.5 Billion
Oracle's Mark Hurd (theguardian.com)
Oracle announced today that it has signed an agreement to acquire Responsys for $27 a share, or about $1.5 billion. Responsys, a provider of customer experience cloud-based software to B2C marketers, will form a complement with Eloqua on the B2B side to extend the reach of Oracle's Customer Experience Cloud.
“Recognizing the unique needs of the CMO in B2B and B2C industries, the Oracle Marketing Cloud is now the only platform to unite enterprise-class leaders in these historically distinct marketing-automation fields,” Oracle President Mark Hurd said in a release announcing the deal.
Responsys's website today is dominated by a red and black “Oracle buys Responsys” banner and the proclamation that today was a big day in the company's history.
“Responsys has always been focused on helping marketers realize their largest opportunity -- coordinating their marketing touch points across channels, across the customer lifecycle, and across industries,” said Responsys CEO Dan Springer. “As a part of Oracle, we will only accelerate our efforts.”
The deal is an affirmation of the power of customer-centric marketing, said one industry insider. “Following Salesforce's acquisition of ExactTarget earlier this year, large enterprise software companies are increasingly looking to round out their portfolio with solution offerings that mediate one-to-one interactions between brands and consumers," said Alex Lustberg, CMO of Lyris, a digital marketing software company. "This acquisition--and the price paid--validates the strength of our market and the strategic nature of customer-centric messaging technologies.”
Responsys's stock closed at $19.82 yesterday, so the $27 Oracle agreed to pay represents a 38% premium.