Oracle will buy Hyperion for $US3.3 billion

Oracle has agreed to acquire business intelligence software vendor Hyperion for US$3.3 billion

Oracle has agreed to acquire business intelligence software vendor Hyperion Solutions for US$3.3 billion in cash, it said on Thursday.

Hyperion's products, which include financial planning tools and a powerful online analytical processing (OLAP) engine, will complement Oracle's family of business intelligence software, which it began to build out early last year, Oracle said.

The deal is Oracle's latest in a spree of acquisitions that have included business applications vendors PeopleSoft and Siebel Systems. The vendor will extend its portfolio of database, applications and middleware products to include one of the broadest sets of business intelligence tools in the industry, company executives said.

The acquisition continues Oracle's strategy of growing its revenue and customer base through major acquisitions. But it also presents the challenge of integrating products and employees from yet another large company into Oracle, which has announced almost 30 acquisitions since the start of 2005.

Hyperion says it has about 12,000 customers using its software, and about 2,500 employees spread over 20 countries. It reported revenue of US$765.2 million for the fiscal year to June 30, 2006.

Oracle agreed to pay US$52 per share for the company, a premium of 21 percent over Hyperion's closing share price Wednesday. Oracle plans to launch its offer for Hyperion's shares by March 14, and will need a simple majority of the shares tendered in favor of the deal, said Oracle Co-President and Chief Financial Officer Safra Catz.

The companies hope to close the deal by April subject to customary closing conditions, she said.

Oracle had a handful of market-leading BI vendors to choose from, which also include Cognos and Business Objects. Hyperion was the best fit because there is little overlap between the two companies' products, said David Mitchell, head of global software research with the U.K. analyst company Ovum.

Oracle began to expand its BI software efforts last year, offering tools for integrating data among a number of applications and technologies. But its offerings are still focussed primarily towards existing Oracle customers, Mitchell said.

"Adding Hyperion to the family makes it a best-of-breed player, rather than just focusing on the traditional Oracle customer base," he said.

The acquisition could start a "domino effect" in which the other large BI vendors are also acquired, according to Mitchell. Rumors have long circulated that IBM will acquire Cognos, for example.

Part of Oracle's motivation for the deal was to bring itself closer to customers of its main applications rival SAP, many of whom use Hyperion's software, Oracle Co-President Charles Phillips said during the conference call.

Ian Charlesworth, a senior analyst at Ovum, said those customers are unlikely to abandon significant investments in SAP and switch to Oracle applications. But buying Hyperion will give Oracle a portion of the dollars that SAP customers spend on IT, he said.

Phillips said Oracle will continue to support other vendors' products with Hyperion's software, including SAP's. That continues the strategy Oracle has followed with its business applications, which have remained compatible with databases from other vendors.

"Oracle has started to get heterogeneity these days, unlike the Oracle of old," Ovum's Mitchell said.

Still, Oracle executives have discussed improving the business intelligence capabilities in the Oracle database, and buying Hyperion could give the company a selling point over database rival IBM, which has counted Hyperion among its main BI partners.

IBM is also close partners with Business Objects, however, and is developing new products that integrate IBM's data warehousing software with Business Objects' reporting software, sources familiar with those plans said this week. IBM also has a relationship with open-source BI vendor Pentaho.

Along with the products, buying Hyperion will bring Oracle more than 1,900 salespeople and consultants focussed on selling BI products, Phillips said.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?