June 24, 2014
Oracle has announced its acquisition of MICROS Systems, a retail software and hardware solutions firm, for $5.3 billion. Joining the $190 billion giant would enable Micros to push expansion internationally and in newer market as its need of development spends on restaurant business would be met. As per industry analysts, Micros had a healthy and growing business split of about 50-50 between point of sales for restaurants and retail and other half from management software for hotels.
From the acquisition, Oracle will get a new major stream of recurring revenue and all the data that Micros had stored on its Simphony database. Micros has already been an Oracle database reseller. Oracle would now be working more directly with Micros customers like IHOP, Burger King, and Ben & Jerry’s, as well as hotel chains like Hilton, Hyatt and Marriott.
Another possible attraction for Oracle is that Micros could fill in gaps in Oracle’s retail solution. One would be vertical expertise in parts of retail that are requiring increasing investment amounts on IT infrastructure. Another would be to tighter integration between Oracle’s database and software stack for hotel retailers.
Oracle has successfully helped customers across multiple industries harness the power of cloud, mobile, social, big data and the Internet of things to transform their businesses, Mark Hurd, an Oracle president, said in a statement. We anticipate delivering compelling advantages to companies within the hospitality and retail industries with the acquisition of Micros.
Micros is into the business of selling software used by retailers and hospitality providers. Micros also sells internet connected cash registers to restaurants, retail shops and other companies along with software and technical services to power them. Its services include management software, hardware, cloud services and scalable point-of-sale solutions.
Analysts have said that acquisition of Micros, which long has been a rumored acquisition target for Oracle, would be a sign that the database giant is interested in grabbing a bigger foothold in the retail and hospitality industries. Oracle, which has $39 billion in cash and marketable securities and a $190 billion market capitalization, needs to 'go on the deal warpath' to expand into emerging areas of corporate technology where the company doesn't currently generate much revenue.