Oracle To Acquire PLM Software Maker

Oracle opened its wallet again this week, shelling out about $495 million to acquire Agile Software, a developer of product life-cycle management (PLM) applications.

Based in San Jose, Calif., Agile makes software to help companies manage development, supply chain, quality control, financial analysis and compliance functions, among others, for their products. Its 1,200 worldwide customers include clients in the aerospace and defense, automotive, consumer packaged goods, electronics and pharmaceutical industries.

Agile reported a loss of $8.4 million on revenue of $132.1 million in its 2006 fiscal year. The company has never turned an annual profit since its launch in 1995.

Oracle plans to sell Agile's products as stand-alones and as integrated parts of its application suite. The Redwood Shores, Calif., software giant already was a technology partner of Agile, which supports integration with Oracle's E-Business Suite and licenses Oracle database management and application server software.

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Agile also had ties to Oracle rivals SAP and Infor Global Solutions, whose ERP systems Agile integrates with. Oracle said it will continue to support Agile deployments with rival databases, ERP and CRM systems.

For channel partners, the deal will open up access to Agile's PLM offerings, Oracle said. Oracle plans to bring Agile resellers into its partner network and establish an Agile focus area.

Oracle's cash tender offer of $8.10 per share represents a 12 percent premium on Agile's closing share price on Monday, the day before the deal's announcement. Pending regulatory and shareholder approvals, Oracle expects the deal to close in July.