Oracle has agreed to purchase Responsys for $1.5 billion [£920 million] that will give it a ready made business to customer [B2C] marketing producer and help to create what it has dubbed the world’s largest modern marketing cloud.
The database manufacturer agreed to pay $27 [£16.53] a share for Responsys, 38 per cent above the company’s closing share price, and the deal will be completed in the early part of next year, according to Bloomberg.
“Recognizing the unique needs of the CMO in B2B and B2C industries, the Oracle Marketing Cloud is now the only platform to unite enterprise-class leaders in these historically distinct marketing-automation fields,” said Mark Hurd, President, Oracle. “Our strategy of combining the leaders across complementary technologies signifies Oracle’s overwhelming commitment to winning and serving the CMO better than any other software company in the world.”
Responsys, which is California based like Oracle, creates software that lets businesses construct email campaigns for consumers as well as keep tabs on how well ads are performing. It will be added to Oracle’s Customer Experience Cloud that already includes commerce, sales, service, social and the Oracle Marketing Cloud.
“Oracle not only shares our vision, but is the proven leader in bringing together best-in-class technologies and companies to realize the largest enterprise opportunities. We couldn’t be more excited about what this means for our customers and employees,” said Dan Springer, CEO, Responsys.
FBR Capital Markets analyst Daniel Ives still has a buy recommendation on Oracle shares and explained that the deal fits in with the company’s strategy for the coming years.
"The Responsys acquisition further expands the company's cloud initiative, which remains a key ingredient to Oracle's recipe for success over the coming years," he said.
Oracle has now made seven acquisitions in 2013 and the Responsys deal represents its largest outlay since it paid $1.7 billion [£1.04 billion] for Acme Packet in February 2013.