Oracle Corp. has signed a definitive agreement to acquire BEA Systems for $19.375 per share, or $8.5 billion, in cash.
The value of the offer is actually $7.2 billion net of BEA's cash on hand of $1.3 billion.
According to Oracle, the deal is expected to be accretive to Oracle's earnings by at least 1-2 US cents on a non-GAAP basis in its first full year after closing.
The transaction is anticipated to close by mid-2008, subject to BEA stockholder approval, certain regulatory approvals and customary closing conditions.
Oracle says the addition of BEA products and technology will significantly enhance and extend its Fusion middleware software suite.