Oracle buys web firm Eloqua to boost cloud presence

Thu Dec 20, 2012 12:10pm EST
 
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By Sayantani Ghosh

(Reuters) - Oracle Corp agreed to buy Eloqua Inc, a maker of web-based marketing automation software that listed in August, for about $810 million as it seeks to expand its cloud-computing services.

Eloqua makes software to help businesses predict and grow revenue by monitoring marketing and sales initiatives. Its customers include AON Plc, Dow Jones, Automatic Data Processing Inc, Polycom Inc and National Instruments Corp.

Oracle, which came late to cloud computing, is trying to be a one-stop shop for operating systems, databases, computer programs and infrastructure over the Web.

"The acquisition of Eloqua will add a leading market automation solution to Oracle's strong salesforce automation products and the recently acquired RightNow call center automation solution," Nomura Equity Research analysts said in a research note.

Oracle bought RightNow Technologies last year for $1.5 billion, sparking several more acquisitions in the cloud-computing market including IBM Inc's acquisition of Kenexa and SAP AG's purchase of SuccessFactors.

Oracle, which has traditionally offered installed software products, then bought Taleo, a cloud-based HR software firm.

"We would expect Oracle to continue to make acquisitions in this space, to bolster its Fusion Applications suite and respond to competitive pressure in the applications market from SAP and Salesforce.co," Nomura said.

Oracle priced the deal at $871 million, net of Eloqua's cash. Based on the 34.5 million Eloqua shares outstanding as of October 31, the equity portion of the deal came to $810 million.   Continued...

 
The company logo is shown at the headquarters of Oracle Corporation in Redwood City, California February 2, 2010. REUTERS/Robert Galbraith