Oracle continues its shopping spree as it tries to spend some of that huge cash surplus that they have on hand. Today Oracle announced that it has agreed to buy Art Technology Group, a leading e-commerce software company through a cash merger for approximately $1 billion dollars. ATG’s suite of e-commerce solutions enable enterprises to provide a cohesive online customer experience with sophisticated merchandising, marketing, content personalization, automated recommendations, and live-help services.
ATG eCommerce software platform is already an industry best of breed and Oracle believes that it will be very complementary to Oracle’s existing CRM and ERP type applications. ATG also offers on demand commerce optimization applications that provide companies with an online presence, the ability to improve customer satisfaction through immediate service response and automated recommendations.
For ATG’s current market position I would say that the price tag on this deal is just about right and a billion dollars to Oracle is chump change, so this deal seems to be one of the few tech acquisitions we have seen recently that is based on a strategic need and sound fundamentals. The transaction is subject to stockholder and regulatory approval and other customary closing conditions and is expected to close by early 2011.