Excerpted from: Sina Tour, Eastern China During December 13th 06:25 (Beijing time December 13 19:25) news, Oracle announced today that the company has reached an agreement in Tongren, will acquire Renke equity in $ 26.5 per share Board of Directors of the two companies have approved this M & A transaction, and the merger is expected to be completed in early January next year. The total value of this acquisition is as high as $ 10.3 billion, far exceeds the original offer of Oracle. After the acquisition of Renke, Oracle, the entire commercial software market will have a huge change. The situation in SAP, Renke and Oracle three countries will evolve into two strong hegemony of SAP and Oracle. Of course, Microsoft and IBM are also potential competitors of this market. From another perspective, this mergers have also exposed the weaknesses of these software giants. In the 1990s, corporate customers have invested a lot of funds to buy software products. However, the current situation has been greatly different. More and more companies tend to buy cheap software, requiring a larger discount to software manufacturers, and even simply turning to free Open source software. Although a good performance has been made in the second quarter, Oracle still has not avoided the impact of the environment. Financial report shows that Oracle's core business database encounters a strong challenge of Microsoft and IBM. Oracle hopes to enhance its competitiveness in the commercial software market by acquiring Renke, bringing new economic growth points to the company. Previously, Oracle CEO Ellison has repeatedly stated that the acquisition of Renequo is critical to Oracle. Although the acquisition of benevolence is successful, Oracle also pays a heavy price. Oracle's final acquisition price is $ 26.5 per share, 66% higher than the company's offer in June 2003, 10% higher than the latest offer. At the same time, Oracle's bidding for the operation of Renegro has also had a negative impact. In the first nine months of this year, the company's net profit fell by 9% year-on-year. Previously, Ellison had repeatedly stated that there were too many companies like Renke and BEA, which attracted a lot of customers during the software industry boom, but in recent years, it has been in trouble with the decrease in enterprise expenditure. He said: "The strong is so strong, the weak is weak, this law is equally applicable to software industry." On the same day, Ellison also said that Oracle will continue to launch new version of Renke products, and will also develop JD Edwards products. JD Edwards were acquired by Renke in 2003. Ellison's speech means that Renke's engineers will continue to stay in research and development in the original workplace. Oracle expects that the acquisition of benevolence will increase the company's earnings per share in the fourth quarter of fiscal 2005, and the earnings per share in fiscal 2006 increased by 8 cents, while the growth rate of 2007 will be larger. In this acquisition battle, the biggest beneficiary is the most important competitor SAP of Oracle and Renke. Since the acquisition of Oracle and Renke is bored, many users have turned from SAP. SAP said that the company's current market share has increased to 56%, and 2003 Renke's acquisition war has just started 51%.
