By Agency reporter

Wednesday, 3 Nov 2010

NEW YORK: Oracle Corporation said on Tuesday it would buy Art Technology Group Incorporation for $1bn, to bolster its e-commerce software applications.

Oracle‘s $6-per-share bid represents a 46 per cent premium over ATG‘s close of $4.10 on Nasdaq. ATG shares were trading at $5.99 in early Nasdaq trading, Reuters reported on Tuesday.

The acquisition, which is expected to close early next year, is the latest in a wave of dealmaking by a major technology company to diversify product portfolios, from computing, security, storage and networking to online video conferencing and e-commerce.

”It‘s a nice, safe acquisition for Oracle,” said an Avian Securities analyst, Jeff Gaggin, adding that the deal will expand Oracle‘s retail software portfolio, which includes Retek, a retail software company it acquired in 2005.

More than 1,000 companies use ATG software to help with online customer transactions on mobile devices and in stores.

ATG creates software for customers to buy items online. Its customers include Best Buy Company Incorporated, AT&T and Vodafone Group Plc. It competes with Amazon.com and GSI Commerce.

ATG, which is based in Cambridge Massachusetts, had sales of $50.3m in the third quarter of 2010, up 16 per cent from $43.4m a year earlier.

Avian Securities‘ Gaggin called ATG a ”moderate grower” and said it was reasonable for Oracle to pay a 46 per cent premium on its shares.

Oracle is in a California court on Tuesday seeking some $2bn in damages from rival SAP AG on accusations that SAP stole its software.

Oracle shares were up 23 cents at $29.38 in Nasdaq morning trade.

By Agency reporter

Wednesday, 3 Nov 2010

NEW YORK: Oracle Corporation said on Tuesday it would buy Art Technology Group Incorporation for $1bn, to bolster its e-commerce software applications.

Oracle‘s $6-per-share bid represents a 46 per cent premium over ATG‘s close of $4.10 on Nasdaq. ATG shares were trading at $5.99 in early Nasdaq trading, Reuters reported on Tuesday.

The acquisition, which is expected to close early next year, is the latest in a wave of dealmaking by a major technology company to diversify product portfolios, from computing, security, storage and networking to online video conferencing and e-commerce.

”It‘s a nice, safe acquisition for Oracle,” said an Avian Securities analyst, Jeff Gaggin, adding that the deal will expand Oracle‘s retail software portfolio, which includes Retek, a retail software company it acquired in 2005.

More than 1,000 companies use ATG software to help with online customer transactions on mobile devices and in stores.

ATG creates software for customers to buy items online. Its customers include Best Buy Company Incorporated, AT&T and Vodafone Group Plc. It competes with Amazon.com and GSI Commerce.

ATG, which is based in Cambridge Massachusetts, had sales of $50.3m in the third quarter of 2010, up 16 per cent from $43.4m a year earlier.

Avian Securities‘ Gaggin called ATG a ”moderate grower” and said it was reasonable for Oracle to pay a 46 per cent premium on its shares.

Oracle is in a California court on Tuesday seeking some $2bn in damages from rival SAP AG on accusations that SAP stole its software.

Oracle shares were up 23 cents at $29.38 in Nasdaq morning trade.

 Source: Punch