Software giant Oracle agrees to purchase ATG for $1 billion
In an effort to add e-commerce to its portfolio, online technology maker Oracle has agreed to pay $1 billion to acquire Art Technology Group (ATG). The Wall Street Journal reports that the purchase was made to further Oracle’s plan to carry industry-specific products, as ATG focuses on retailers. Oracle will pay $6 a share in cash for the acquisition, which is 46 percent more than Monday’s closing price.
“Bringing together the complementary technologies and products from Oracle and ATG will enable the delivery of next-generation, unified cross-channel commerce and [customer relationship management],” Thomas Kurian, executive vice president of Oracle Development, told the news source.
Based in Cambridge, Massachusetts, ATG provides e-commerce software and IT services for things such as online retail, travel, media and finances. More than 1,000 companies use software developed by ATG, which typically helps with online transactions on mobile devices and in stores. Their software tracks and analyzes customers’ behavior on certain websites, and also offers add-ons that Oracle expects to boost customer service. The company reported a substantial third quarter profit of $4.2 billion, up from the $4 billion profit reported for the third quarter of 2009.
According to Bloomberg, Oracle has been involved in 65 such deals over the last five years, nine in the last year alone. Many analysts consider the move to be a safe and smart one, as it will allow Oracle to offer a more diverse experience to their customers.
“This combination will enhance the ability to bring all their commerce activities together – creating a more consistent and relevant experience for their customers across all interaction channels, including online, in stores, via mobile devices and with call centers,” CEO of ATG Bob Burke said in a statement.