Oracle (ORCL) is buying business-intelligence company Hyperion (HYSL) for a premium North of 20% in a deal worth about $3.3 billion. SAP (SAP), Orcacle’s largest rival, markets its software to a number of companies who use Hyperion for human resource and finance functions. So, Oracle in effect flanks its largest rival.
But, the net loser in the deal is probably Hyperion rival Business Objects (BOBJ). The third company in the market is Cognos (COGN). Business Objects has fairly modest revenue. Its revenue in the last quarter was $310 million. Hyperion’s last quarter had a topline of $223 million, but with access to Oracle’s huge sales force, it has a chance to super-charge that growth.
BusinessObjects’ shares have struggled. A year ago, its stock traded at $43. It now changes hands at just above $35, and that could get worse.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Top Gaining Stocks
Top Losing Stocks