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Oracle outbids SAP

By Stuart Lowman, ITWeb junior journalist
Johannesburg, 22 Mar 2005

Oracle has acquired software maker Retek in a deal worth $631 million, or $11.25 a share.

The deal ends a three-week bidding war between Oracle and German rival SAP.

SAP, which upped its offer to $11 a share, dropped out of the bidding, according to a statement released by Oracle and Retek.

Oracle CEO Larry Ellison says the Retek deal will strengthen Oracle`s position in the applications market globally.

Earlier this month Ellison said the offer for Retek was intended to defend Oracle`s market share in North America, where SAP is aggressively expanding, and to extend Oracle`s reach among retailers.

"Oracle`s applications business in North America is larger than SAP`s," he said. "We intend to defend our number one position."

This is Oracle`s second acquisition this year, after acquiring PeopleSoft in January.

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