Oracle finally acquires Retek for $ 640 Million

March 2005 was an interesting month for retail software company Retek. On March 1 SAP announced that it is acquiring Retek for $ 496 Million. On March 9 Oracle stalls the acquisition by announcing a higher bid for $ 504 Million. After a war between SAP and Oracle for 2 weeks, Retek goes to Oracle for an all-cash deal of $ 640 Million on March 21.

Considering that Retek has just 525 employees and an annual revenue of $ 174 Million it is a bonanza for Retek investors.

Enterprise software market is going through a tremendous consolidation. JD Edwards folded into PeopleSoft; in turn PeopleSoft went into Oracle belly. It will be interesting to watch this development over the next four years. In the hardware industry Digital was acquired by Compaq; in turn HP acquired Compaq. But after four years HP fires the CEO Carly Fiorina who master-minded Compaq acquisition

Another interesting development is the industry alignment of enterprise solution; Retek has a demand planning, supply chain execution and optimization, data warehousing, analytics etc., fine-tuned for Retail; it also launched the world’s first Java-based PoS (Point of Sale) terminal. What does it imply for enterprise software products?

Retek has 200+ customers including my favourite “Best buy”. Started by three Aussie engineers in 1986 Retek went for an IPO in 1999

One Response to “Oracle finally acquires Retek for $ 640 Million”

  1. inventory software Says:

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