Oracle wins Retek bidding war
Retail software company goes to Oracle as SAP bails out.
Oracle has signed a takeover agreement with Retek after SAP bailed out of the bidding war for the enterprise retail applications company.
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Retek shareholders will receive $11.25 per share, valuing the transaction at between $631m (£336m) and $669m.
The agreement signals the end of a fierce struggle between Oracle and German software maker SAP to acquire Retek.
SAP laid its cards on the table in February, and Oracle launched a competing offer in early March. Last week SAP raised its offer, but was subsequently outbid by Oracle.
Retek is a developer of enterprise application software for the retail industry, offering products including supply chain management and merchandise operations management.
‘Oracle has the largest applications business in North America, and we intend to expand that leadership position,’ said Oracle chief executive Larry Ellison. ‘Combining Oracle with Retek is an important step in that direction, and it strengthens our position in the retail applications market globally.’
During the bidding war Retek’s management supported SAP’s bid, but the company now has made a strategic U-turn.
‘We believe that Oracle’s offer is a good deal for Retek stockholders,’ said Retek chief executive Marty Leestma. ‘We will work with Oracle over the next several weeks to ensure that the integration is not disruptive for our clients and employees.’
Oracle’s acquisition received approval from US regulators last Monday and Oracle already owns 5.5 million shares of Retek common stock, representing nearly 10 per cent of total outstanding shares.