Bargain Hunting: Oracle, Symantec, Tata Go Shopping

When the going gets tough, the tough go shopping.

Or at least that’s why they do in the technology business.

In what seems like a fairly optimistic note in these gloomy times, some companies are taking advantage of reduced valuations to pick up strategic assets at prices that undoubtedly are a lot lower than they would have been even a few months earlier.

• Oracle (ORCL), the king of the enterprise software shoppers, is buying Philadelphia-based Primavera Software, which providers portfolio project management software. No terms were disclosed. Investors in the company included Insight Venture Partners and Francisco Partners.
• Symantec (SYMC) is buying MessageLabs, a provider of online messaging and Web security services with offices in London and New York, for $695 million in cash, payable in the form of 310 million in British pounds and $154 million in greenbacks. Symantec says MessageLabs had revenue of $145 million in the fiscal year ended July 31, and grew by more than 20% over the previous year.
• Tata Consultancy Services is acquiring Citigroup (C) Global Services for $505 million. The unit is Citi’s captive business process outsourcing unit, operating in India. The deal includes an agreement for TCS to provide Citi with outsourcing services worth $2.5 billion over 9.5 years.

Public market investors might be too scared to invest right now, but expect to see more companies seeking out bargains as the downturn drags on.

Comments

[Chris B:]

You can bet they're not getting investment advice from Jim Cramer. Only the poor do that.

2008 Oct 08 05:49 PM

[Joey:]

Since Oracle announced the $83.6 million dollar salary to the CEO, its value dropped from $23 to $16.80. A loss of around 35% in stock price. What was Oracle's Board thinking when they allowed stockholders money to pay their CEO more than the typical $5 million dollars that a CEO like Avon gets when she grew shareholders' money about 20% in one year. .

2008 Oct 09 09:36 AM

[Joey:]

Oracle's stock is down over 35% in two months. That is two months after the announcement of an $83.6 million dollar salary to the CEO. Stockholders - this is your money. The Board is suppose to represent you - not line the pockets of the CEO with your money, your children's money, and your grandchildren's money. Fire the board.

2008 Oct 10 11:28 AM