Arik Hesseldahl

Recent Posts by Arik Hesseldahl

Oracle Acquires Cloud Marketing Player Responsys for $1.5 Billion

Marketing software in the cloud is still pretty hot. Software giant Oracle proved it today by saying it will spend $1.5 billion to acquire email marketing company Responsys for $27 a share.

The deal works out to a 38 percent premium over Responsys’ closing price on Thursday. The company went public in 2011 at $12 a share.

Responsys has been mentioned often as a likely acquisition target since acquired ExactTarget in June for $2.5 billion.

That leaves Constant Contact, another email marketing company, available — its shares rose by more than four percent today in the wake of this deal. And while we’re at it, it’s worth mentioning that shares of Marketo, another cloud-based marketing company, are up by more than nine percent this morning.

Oracle said it will combine Responsys with another recent acquisition, Eloqua, which it bought a year ago today for $871 million. The result will be a marketing cloud product that serves both the business-to-business and business-to-consumer ends of the spectrum.

The deal will close early in the new year. Here’s Oracle’s original announcement:

Oracle Buys Responsys
Creates the World’s Largest Modern Marketing Cloud by Adding Leading B2C Marketing Orchestration Platform
Redwood Shores, Calif. — December 20, 2013

Oracle today announced that it has entered into an agreement to acquire Responsys, Inc. (NASDAQ: MKTG), the leading provider of enterprise-scale cloud-based B2C marketing software, for $27.00 per share in cash or approximately $1.5 billion, net of Responsys’ cash. Responsys is used by the most respected B2C brands across the globe to orchestrate marketing interactions across email, mobile, social, display and the web, at massive scale.

The addition of Responsys extends Oracle’s Customer Experience Cloud, which includes Commerce, Sales, Service, Social and the Oracle Marketing Cloud. By bringing together Responsys and Oracle Eloqua in the Marketing Cloud, for the first time CMOs that support industries with B2C or B2B business models will be equipped to drive exceptional customer experiences across marketing interactions and throughout the customer lifecycle from a single platform.

The Board of Directors of Responsys has unanimously approved the transaction. The transaction is expected to close in the first half of 2014, subject to Responsys stockholders tendering a majority of Responsys’ outstanding shares and vested equity incentive awards in the tender offer, certain regulatory approvals and other customary closing conditions.

“Recognizing the unique needs of the CMO in B2B and B2C industries, the Oracle Marketing Cloud is now the only platform to unite enterprise-class leaders in these historically distinct marketing-automation fields,” said Mark Hurd, President, Oracle. “Our strategy of combining the leaders across complementary technologies signifies Oracle’s overwhelming commitment to winning and serving the CMO better than any other software company in the world.”

“Responsys has always been focused on helping marketers realize their largest opportunity – coordinating their marketing touch points across channels, across the customer lifecycle, and across industries, and as a part of Oracle, we will only accelerate our efforts,” said Dan Springer, CEO, Responsys. “Oracle not only shares our vision, but is the proven leader in bringing together best-in-class technologies and companies to realize the largest enterprise opportunities. We couldn’t be more excited about what this means for our customers and employees.”

“Oracle customers will benefit from continued R&D investment across the Responsys and Eloqua platforms, ensuring that CMOs in all industries are armed with a best-in-class solution,” said Thomas Kurian, Executive Vice President, Oracle Development. “When combined with the full Oracle Customer Experience Cloud, for the first time, companies will be empowered to orchestrate individualized experiences that extend from Marketing, to Commerce, to Sales, to Service, to Support.”

Latest Video

View all videos »

Search »

There was a worry before I started this that I was going to burn every bridge I had. But I realize now that there are some bridges that are worth burning.

— Valleywag editor Sam Biddle