BEA Systems, Inc. is one of the major companies developing enterprise infrastructure software. BEA makes middleware, products that help software run on top of databases. Founded in 1995, BEA has specialized in the enterprise infrastructure software market throughout its 12 year history, and currently has 78 offices in 37 countries. BEA is headquartered in San Jose, California. On January 16, 2008, Oracle Corporation announced it was purchasing BEA Systems.
The company's name is an acronym based on the first names of the company's three founders: Bill Coleman, Ed Scott and Alfred Chuang. Alfred Chuang is still with the company, acting as the chairman and CEO. At the time, BEA's largest shareholder, Carl Icahn, expressed his outrage over BEA's rejection of Oracle's offer and threatened to launch a proxy fight. BEA later reached an agreement to show Icahn its financials under a nondisclosure agreement, in an effort to show it was worth holding out for more than $17 a share.
Chuang, a BEA co-founder, had long been viewed in the industry and by Wall Street as staunchly opposed to any sale, as rumors over the years surfaced that BEA was in play for an acquisition. Over the years, BEA has faced growing competition from such rivals as Microsoft, Oracle, and various open-source companies.
Oracle, meanwhile, has developed Fusion Middleware, in which it will use BEA's technology to enhance its offerings. BEA's WebLogic Java Server will be coupled with the various components of Oracle's Fusion software suite. "BEA has been a pioneer in middleware," Larry Ellison, Oracle founder and chief executive, said during a tightly scripted press conference. "Alfred is credited with a lot of those successes."
Ellison also noted that the acquisition would accelerate the adoption among the combined companies' customers of Java-based middleware technologies and service-oriented architectures (SOA). It will also increase the Oracle's footprint in key regions such as Greater China and in industries such as telecommunications. Oracle plans to retain and support BEA's product lines, similar to its work following the major acquisitions of PeopleSoft, JD Edwards, and Siebel Systems.
"There are a number of fundamental synergies between Oracle and BEA," Pat Walravens, an analyst with JMP Securities, noted in a research note. "The BEA acquisition would make Oracle the No. 1 player in the middleware space, pushing Oracle ahead of IBM. Over 50 percent of BEA's revenue is maintenance. Many of the PeopleSoft applications run on BEA's middle tier. In addition, many BEA shops run the Oracle database."
BEA also offers a high-end messaging product to supplement Oracle's offering and can dish out stronger enterprise-service-business technology via its AquaLogic product, which allows customers to use SOA technology to access information, Gilpin noted. Oracle in March acquired Tangosol, a transaction-processing specialist whose products should complement those of BEA as Oracle brings those assets under one roof, Gilpin said.
The merger will also give Oracle a greater presence in virtualization, a market it is just entering but one in which BEA's JRockit Java Virtual Machine has had a presence for several years. "This transaction is an excellent example of the great results that can be achieved for all constituencies when the shareholder activist is able to work cooperatively with management," Icahn said in a statement. Icahn, who holds a 13 percent stake in BEA, said he plans to vote in favor of the merger.
For more details on Oracle to buy BEA visit www.halfvalue.com and www.halfvalue.co.uk
For more information on books visit www.Lookbookstores.com
The company's name is an acronym based on the first names of the company's three founders: Bill Coleman, Ed Scott and Alfred Chuang. Alfred Chuang is still with the company, acting as the chairman and CEO. At the time, BEA's largest shareholder, Carl Icahn, expressed his outrage over BEA's rejection of Oracle's offer and threatened to launch a proxy fight. BEA later reached an agreement to show Icahn its financials under a nondisclosure agreement, in an effort to show it was worth holding out for more than $17 a share.
Chuang, a BEA co-founder, had long been viewed in the industry and by Wall Street as staunchly opposed to any sale, as rumors over the years surfaced that BEA was in play for an acquisition. Over the years, BEA has faced growing competition from such rivals as Microsoft, Oracle, and various open-source companies.
Oracle, meanwhile, has developed Fusion Middleware, in which it will use BEA's technology to enhance its offerings. BEA's WebLogic Java Server will be coupled with the various components of Oracle's Fusion software suite. "BEA has been a pioneer in middleware," Larry Ellison, Oracle founder and chief executive, said during a tightly scripted press conference. "Alfred is credited with a lot of those successes."
Ellison also noted that the acquisition would accelerate the adoption among the combined companies' customers of Java-based middleware technologies and service-oriented architectures (SOA). It will also increase the Oracle's footprint in key regions such as Greater China and in industries such as telecommunications. Oracle plans to retain and support BEA's product lines, similar to its work following the major acquisitions of PeopleSoft, JD Edwards, and Siebel Systems.
"There are a number of fundamental synergies between Oracle and BEA," Pat Walravens, an analyst with JMP Securities, noted in a research note. "The BEA acquisition would make Oracle the No. 1 player in the middleware space, pushing Oracle ahead of IBM. Over 50 percent of BEA's revenue is maintenance. Many of the PeopleSoft applications run on BEA's middle tier. In addition, many BEA shops run the Oracle database."
BEA also offers a high-end messaging product to supplement Oracle's offering and can dish out stronger enterprise-service-business technology via its AquaLogic product, which allows customers to use SOA technology to access information, Gilpin noted. Oracle in March acquired Tangosol, a transaction-processing specialist whose products should complement those of BEA as Oracle brings those assets under one roof, Gilpin said.
The merger will also give Oracle a greater presence in virtualization, a market it is just entering but one in which BEA's JRockit Java Virtual Machine has had a presence for several years. "This transaction is an excellent example of the great results that can be achieved for all constituencies when the shareholder activist is able to work cooperatively with management," Icahn said in a statement. Icahn, who holds a 13 percent stake in BEA, said he plans to vote in favor of the merger.
For more details on Oracle to buy BEA visit www.halfvalue.com and www.halfvalue.co.uk
For more information on books visit www.Lookbookstores.com
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