Oracle's (NASDAQ:ORCL) M&A machine has been quiet lately.
Well, that ended today. The company announced it will buy Hyperion Solutions (NASDAQ:HYSL) for $3.3 billion in cash. The offer price is $52 per share, which is a 21% premium.
Hyperion develops so-called business performance management software. That is, it helps businesses collect, analyze, and share data. Apparently, it's a business that's getting lots of traction.
Interestingly enough, in the press release, Oracle indicated that this deal is a way to put even more pressure on its arch rival, SAP (NYSE: SAP).
And, I think it will. After all, a good amount of Hyperion's customers are actually SAP customers.
Also, it looks like Oracle is getting a pretty good valuation – at about 2.4X revenues.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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