Oracle purchases RightNow Technologies to compete in the cloud services market

The Silicon Valley giants, Oracle Corporation has expanded its horizon with a new acquisition this week. The software maestros have bought RightNow Technologies to extend their corporate portfolio to cloud services.

The cloud services have taken hype in fame and usage in the last two years as a next generation social networking platform. With Apple, Inc.’s announcement of new iCloud services in June, the corporate interest in the new tech has taken a boom.

Almost all of Oracle’s competitors are currently in cloud services. Microsoft launched SkyDrive in the summers alongside Apple’s iCloud, while Google, Inc. started Google + two months ago. It seems that cloud services are attracting a huge interest from
a host of corporate clients coupled with the curiosity shown by the general public.

Oracle finalized the acquisition of one of the oldest clouding service in the world with a coherent purchase of the stock at $43 per share or the accumulative $1.5 Billion purchase for all debts, equities and assets. The deal is expected to complete in the
mid of next fiscal year’s first quarter as a lot of legal issues are to be dealt with before Oracle stamps its corporate tag on the social networking portal.

RightNow’s common share price was reported at $32.23 at the close of last week. However, the mutually agreed purchase price was decided at $43 a share accommodating the preferred stock. RIghtNow’s previous ownership will gather an approximately 20 percent
profit on the sale.

RightNow has been working in the clouding industry since 1997 however; the company saw a boom in 2007 with several revamped services at one platform like web browsing, content sharing and contact centres.

It is believed that Oracle’s name tag attached to RightNow will boast its stock market value. Both Oracle and RightNow are registered in NASDAQ as ORCL and RNOW, respectively.

The RightNow acquisition will be Oracle’s 9^th corporate purchase of the year including Endeca, Ksplice, FatWire Software and Datanomic.

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Posted by Usman Khalid on Oct 27 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry