Portal closed by Oracle

Oracle Corporation representatives have announced the formalization of the Portal Software acquisition. Portal Software, Inc. stockholders had tendered more than 32 million shares in Portal Software, representing approximately 74 percent of outstanding stock. Oracle has now accepted for payment all shares tendered in the offer. A subsequent offering period with respect to its tender offer for all outstanding shares closed last Friday. Stockholders who tendered shares were paid the same $4.90 per share cash consideration paid during the initial offering period.

In all, Oracle has amassed over 38 million shares (or over 88 percent) of Portal stock. The April cash tender offer for $4.90 per share represented approximately US $220 million, and the deal was earlier anticipated to be closed in June. Both companies operated independently until Monday. Once acquisition of Cupertino, California-based Portal was deemed complete by Oracle brass, integration of the two companies began, with the merger official as of Monday.

Following the merger, Portal became a wholly-owned subsidiary of Oracle. The company has also stated that any remaining outstanding Portal shares, excluding those held by citizen stockholders, would be converted in the merger into the right to receive $4.90 per share in cash. Yet another firm swallowed by mammoth Oracle, Portal Software actually seems to fit a niche within the Oracle framework. Oracle president Charles Phillips said in a statement, "We supply technology and applications to over 90 percent of communications companies worldwide today, and billing is a logical and complementary addition for those customers." Portal management and employees will reportedly form a dedicated global communications business unit within Oracle concentrating on billing and revenue management.

Portal’s current SVP of worldwide sales, service and marketing Bhaskar Gorti will head up the unit. Portal Software Inc. is (was?) a leading worldwide provider of billing and revenue management solutions for the global communications and media markets. Portal’s Founder and CEO, Dave Labuda said earlier that bringing together Oracle’s leading ERP, CRM and infrastructure software with Portal’s global billing and revenue management into an integrated solution is a huge win for Portal customers.

Labuda did not comment upon announcement of closure; he will become Portal CTO. Under the deal, Bhaskar Gorti, Portal’s current SVP of worldwide sales, services and marketing, will lead the unit as General Manager, and Dave Labuda will become the unit’s CTO. Oracle has spent about US $20 billion in acquiring twenty-two companies now, headlined by the US $11.1 billion purchase of PeopleSoft. Analysts see the Portal takeover and certain augmentation to the Oracle product line and customer list as part of the heightening battle with SAP AG on the business applications software frontier.