CRM software and services provider Oracle Corp. said yesterday that it will buy competitor Siebel Systems Inc. for $10.66 per share. Though the transaction and its timing are subject to regulatory approvals, the deal is expected to close early next year.
Oracle, which said the deal would make it the world's biggest customer relationship management software maker, valued the takeover at $5.85 billion, or $3.61 billion after subtracting Siebel's $2.24 billion in cash.
Oracle, Redwood Shores, CA, said the acquisition will add 4,000 customers and 3.4 million CRM users.
Siebel long has been mentioned as a possible takeover target. Siebel's CRM and Oracle's enterprise applications and middleware share an architecture that embraces industry standards, and a majority of Siebel's implementations run on the Oracle database, Oracle said.
Siebel's board of directors voted in favor of the deal, and Tom Siebel agreed to vote his shares in favor of the acquisition. Siebel stockholders will convene in a special meeting to vote on the acquisition. Oracle stockholder approval is not required.