Oracle has offered to acquire Silicon Valley rival BEA Systems for $17 per share, a total of about $6.67 billion in cash.
If consummated, the acquisition could eliminate issues about what BEA will do for future growth while furthering Oracle's years-long effort to consolidate as much of the software industry under its own roof.
"Oracle's...offer to purchase BEA Systems provides a logical conclusion to the questions surrounding the future of BEA," said Technology Business Research analyst Stuart Williams. "Oracle can integrate the BEA technology directly into the core of the Oracle stack, strengthening it, while at the same time removing a competitor and adding close to $1.4 billion in annual revenue to its coffers."
Oracle's offer, made in a Tuesday letter to BEA's board of directors, is a 25 percent premium over BEA's closing price Thursday of $13.62. BEA's shares surged 33 percent, or $4.49, to $18.10 in morning trading Friday.