Oracle Moving Forward with Purchase of Eloqua Software

It appears Oracle's intended purchase of marketing software company Eloqua is moving forward.

In mid-December, Oracle announced its intention to acquire Eloqua in a cash-for-stock deal valued at approximately $871 million, or $23.50 per share.

Many market and business analysts have questioned the deal; some think the offering price is too steep, or that Eloqua's longevity is uncertain. Yet, others say the move makes perfect financial sense for Oracle, as Eloqua is a leader in what is a high-growth market right now.

Eloqua seems pretty happy about the deal, too.

"I am excited that we have decided to join forces with Oracle upon closing, because we believe that together, we can accelerate the pace of modern marketing," said Joe Payne, Eloqua's chairman and CEO, on Eloqua's website.

Nevertheless, Mike Thiessen of Motley Fool reported this week that the tech merger appears on track to close by the end of the second quarter of 2013.

"Careful investors may be able to take advantage of news-related dips to pick up temporarily-discounted Eloqua shares," Thiessen suggested.

Once the purchase is complete, Thiessen said Eloqua will cease to trade as a public company and become a wholly-owned subsidiary of Oracle.

Prior to the announcement, Eloqua was trading at about $18 per share; after the announcement, the stock rose to around $23.50. 

Thiessen said, investors who purchased the stock during the one-month period prior to the announcement of Eloqua's acquisition stand to earn a return of more than 30 percent on their investment.

What do you think of Oracle's purchase of Eloqua - smart move? Or over-priced? Tell us in the comments below.

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