After essentially a near-decade of rumors, bids, rejections, and infighting, BEA Systems (NASDAQ: BEAS) is finally being acquired. The company has capitulated and Larry Ellison’s empire is the winner.
Oracle Corp. (NASDAQ: ORCL) is acquiring the company for $19.375 per share entirely in cash of roughly $8.5 Billion (net of $7.2 Billion of BEA’s $1.3 Billion cash on hand).
The merger is set to close in mid-2008 and this is actually a definitive agreement that BEA Systems is capitulating to.
The merger is supposed to be accretive by $0.01 to $0.02 EPS on a non-GAAP basis in the first full year after this merger closes.
BEA has been under pressure of late after the company rejected the previous buyout attempt from oracle. This $19.375 is actually a multi-year high that will make most shareholder money. The 52-week trading range is $10.50 to $18.94, and shares closed at $15.58 yesterday.
Jon C. Ogg
January 16, 2008