Larry Ellison’s Oracle to spend $1 billion for Art Tech

There isn't much Larry Ellison can't do with his infinity sized pockets. His latest acquistion is the Art Technology Group – his goal? To help Oracle expand into e-commerce.

Art Technology are one of the leading providers of e-commerce software, a sector that is very healthy right now as businesses try and expand online and into the mobile sector. Art Technology handle many leading groups, such as AT&T, Continental Airlines and Best Buy. Oracle are paying $6 a share for Art Technology, a 46% premium over Monday's closing price and a level last seen in 2001.

In 2005 Oracle bought Retek Inc, another retail firm who provide software to help retailers manage their businesses. This new deal is expected to close Q1 2011 and is the latest in acquisitions this year by huge corporations such as Hewlett Packard and Intel. Smaller tech firms are being gobbled up into the corporate machine. It isn't due to end there either as analysts suggest that Oracle are still on the lookout for other takeover deals.

Art Technology are in a healthy state with a third quarter recorded profit of $4.2 million, compared with $4 million this time last year. Profits rose to cents a share, from 4 cents a share as revenue climbed to $50.3 million.

KitGuru says: Orace are on the lookout for new deals, so we should see more of these takeovers in the next 6 months.

Become a Patron!