Oracle is in the process of acquiring point of sale software developer Micros Systems for $5.3B. With another multi-billion dollar acquisition on the horizon, we used CB Insights data to analyze Oracle’s acquisition history (both private and public) from 2008 to present.
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Oracle has acquired 56 companies since 2008, with 8 of them valued at $1B or more. Thus far this year they have made 4 acquisitions (5 if the Micros acquisition clears) with their most recent announcement prior to Micros being LiveLOOK, an Internet software company that provides real-time online interaction tools. Overall the company tends to average about 9 acquisitions per year and given their pace through the first half of the year and assuming Micros closes, they’re a bit ahead of their average annual pace for 2014.
Internet Software & Services Counts Four $1B+ Acquisitions
As previously stated, Oracle has completed a variety of $1B+ acquistions over the years. Many of these large acquisitions have come of Internet Software & Services companies, which led all industries in acquisitions, and which underscore Oracle’s cloud ambitions. This includes companies like Taleo (acquired for $1.9B), Responsys ($1.5B), and Rightnow Technologies ($1.5B) among others. Diving deeper, advertising, sales, and marketing companies led all sub-industries, with Oracle acquiring 5 companies within the space since 2008.
Majority of Oracle Acquisitions Occur at Series B+
Despite the high number of large public company acquisitions, Oracle has proven acquisitive across multiple private stages, ranging from companies that have only raised Angel rounds, all the way to Series F. Of the 36 companies that received funding and weren’t previously public, 50% of them were mid-stage companies (raised Series B or C), while 31% were late-stage (Series D+) and 19% early-stage (Angel-Series A). Unlike some of their technology brethren in the Valley, Oracle has generally been uninterested in acquisitions primarily just for talent aka acqui-hiring.
Oracle Acquisition Targets Typically Raise at least $10M
Much like stages, Oracle’s acquisition targets were spread throughout mid to late-stage total funding amounts. 28 of the 36 companies with funding raised a total amount of funding greater than $10M. The 36 private companies raised a cumulative $1B.
Oracle Acquires 95% Within US, Majority Outside California
While Oracle is based in California, the majority of their acquisitions have come from outside the Golden State. California led all geos with 39% of deals, while Massachusetts garnered 14% of deal share behind acquisitions of companies like Acme Packet (acquired for $2.1B in February 2013), Art Technology Group ($1B, 11/10), and Phase Forward ($685M, 4/10). Of the $27.5B in reported deal sizes, California garnered the most, with $19.6B in reported acquisition valuations.
Image: Robert Shenk