Earlier this month, Oracle announced plans to purchase Eloqua for a cool $870 million. With headquarters based in Vienna, Eloqua is a company that specializes in marketing analytics software for businesses of all sizes. Along with their dozens of local clients, Eloqua offers their software and services to businesses from all parts of the world. So, what does Oracle plan to accomplish from this high-dollar acquisition? Keep reading and we’ll go over some possible outcomes from this scenario.
Although Eloqua offers several different services and types of software, their main objective is to identify the visitors on a client’s website. For instance, if a small and pop bakery wanted to see what type of people were visiting their website, they could use Eloqua’s software to determine this information. As more companies take their business to the internet, online analytics is becoming an even more important factor. If you aren’t willing to invest the time, energy and resources into tracking your visitors, then you’re going to be leaving money at the door. Eloqua took notice of this problem and set out to tackle it head on, which they did with huge success.
You might be surprised to hear that Eloqua just went public a few months ago. This allowed several small and large investors to throw an influx of cash at their operations, giving the company roughly $90 million in the process. The company used this money to further the development of their software and services
At first glance, one might assume this deal is beneficial for Oracle and their company, but several people in the IT business world are questioning their decision. You have to remember that Oracle is primarily an IT, database and cloud computing company; therefore, it’s safe to say they have little experience in the complicated marketing world of Eloqua. It they aren’t able to learn fast and keep up with the lingo, they may let Eloqua slip their grasp.
It’s important to note that the buyout deal between Oracle and Eloqua is still in the early stages, and it needs approval by shareholders and regulators before it goes through. With $870 million laying on the table up for grabs, it shouldn’t take much work convincing Eloqua to sell to Oracle. If all goes through as planned, Oracle could own and run Eloqua as early as the 2nd quarter of next year. Of course setbacks and contract changes are common in deals of this magnitude, so keep your eyes peeled for any new information.