After spending more than $20 billion to buy application software developers including Peoplesoft and Siebel, Oracle (NASDAQ:ORCL) is finally reaping the rewards. However, there are no signs that it plans to rest on its laurels.
Vishal Bhagwati, an Oracle vice president whose responsibilities include global mergers and acquisitions, said he sees potential for so-called “tuck-in” deals to beef up the software maker’s offerings, especially in the areas of security and business intelligence applications.
He also said the company would hopefully keep up a pace of closing three or four deals per quarter, with most takeovers likely falling in the range of $5 million to $100 million. Still, big deals remain on the table, he said.
“It’s a pretty brisk mergers and acquisitions market right now,” Bhagwati told Reuters on the sidelines of The Deal and Tech Confidential’s Silicon Valley Summit. “Every software company is on the horizon.”
Give Oracle credit for being among the first to recognize the value of consolidating the industry. By acting early, it was able to snare two of the top prizes before all the private equity players joined the party.
ORCL 1-yr chart: