It’s Official: Oracle to Buy Micros for $5.3 Billion

The news from this weekend is now officialOracle ($ORCL) is buying Micros Systems ($MCRS) for $5.3 billion. Net of cash, the deal comes to $4.6 billion.

The buyout price is $68 per share which is a modest premium over MCRS’s share price from Friday. However, the stock got a big move last week after the rumors came out. This is Oracle’s biggest deal since Sun Microsystems in 2010. In the past 10 years, Oracle has shelled out $50 billion to buy about 100 companies.

In early 1988, shares of MCRS were worth 12.5 cents per share. This deal represents a gain of 544-fold in 26 years.

Let me add a quick note about insider trading. It’s often hard to spot it, but here’s a good example. Check out the minute-by-minute chart below of MCRS for the last week.

big.chart06232014

You can see when the news broke last Tuesday. But also, look at how the stock crept higher just before that — on Friday and Monday. Is that proof? I don’t know but it’s awfully suspicious.

Posted by on June 23rd, 2014 at 9:42 am


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