Micros Systems, Inc. Halted On Oracle Corporation Buyout News

OracleBy Sanatan2014 (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Trading on MICROS Systems, Inc. (NASDAQ:MCRS) stock has resumed after it tripped a circuit breaker at the NASDAQ earlier today. Bloomberg reported that Oracle Corporation (NYSE:ORCL) is close to a deal to acquire the company for over $5 billion, citing sources “familiar with the matter.”

Will Micros, Oracle make a deal?

The sources reportedly said that it’s still possible that the two companies won’t reach a deal. Oracle Corporation (NYSE:ORCL) CEO Larry Ellison has been looking for smaller companies to buy in order to fuel growth. The company has posted 10 consecutive quarters of slow sales growth. It essentially missed the boat for cloud-based software and now is trying to play catch-up. Ellison is working to transform Oracle into a program and gear provider for clients that are shifting to cloud-based solutions.

Oracle Corporation (NYSE:ORCL) isn’t the only major technology company to be angling for an acquisition. This week SanDisk Corporation (NASDAQ:SNDK) said it plans to buy Fusion-IO, Inc. (NYSE:FIO).

Oracle’s no stranger to acquisitions

Also Oracle has looked to acquisitions in the past, gobbling up approximately 100 companies in the last ten years for a cumulative total of around $50 billion. Over 20 of those acquisitions were targeted at specific industries, which suggests that a deal for MICROS Systems, Inc. (NASDAQ:MCRS) might make sense. Micros focuses on software for the hospitality industry. Just this year, Oracle bought out data management platform provider BlueKai.

Bloomberg data shows that if the two companies do make a deal, it will be Oracle’s biggest since it bought Sun Microsystems, Inc. for $5.7 billion in 2009.

Oracle reports earnings this week

Oracle Corporation (NYSE:ORCL) is scheduled to release its next earnings report on Thursday. It would make sense for the company to announce an acquisition along with that report. In the last quarter, Oracle missed consensus estimates for licensing and cloud-subscription revenues. Overall, the company reported earnings of 68 cents per share on $9.3 billion in revenue, compared to analyst estimates of 70 cents per share and $9.4 billion in revenue.

When Oracle Corporation (NYSE:ORCL) releases its earnings report on Thursday, analysts are expecting it to post earnings of 95 cents per share on $11.5 billion in revenue for its fourth fiscal quarter.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.

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