Oracle completes Micros acquisition, forms new global business unit

Oracle makes a big push into hospitality and retail with the addition of Micros

Oracle has wrapped up its US$5.3 billion acquisition of Micros, maker of hardware and software for the hospitality industry, in its biggest deal since the purchase of Sun Microsystems in 2010.

Micros will form the basis for a new global business unit at Oracle focused on hotels, food and beverage, and retailers, led by Mike Webster, who is now head of Oracle's retail business unit.

"Our customers will appreciate our deep domain expertise across both Retail and Hospitality as we deliver mission-critical solutions to solve our customers' most important business initiatives," Webster said in a statement.

Oracle first announced the Micros acquisition in June. Micros develops sells software, point-of-sale hardware systems and other products to its customer bases. It has more than 6,600 employees and its products are in use at more than 330,000 sites around the world, according to an Oracle FAQ document.

Oracle plans to increase investments in research and development for Micros's products. Customers "will also benefit from better integration and alignment with Oracle's other product offerings," according to the FAQ.

Micros and Oracle already have a number joint customers, including hotel chains Hyatt and Accor, according to a presentation document.

With the addition of Micros, Oracle will increase its top-line revenue and have new opportunities to cross-sell its products to the Micros installed base. It can also pick up brand-new customers, given that many hotel and restaurant chains are looking to replace aging systems.

In addition, Oracle can look to pair its portfolio of data-analysis technology with the vast amounts of information flowing through Micros POS systems and applications, thereby generating insights into customer behaviors, likes and dislikes, and the relative performance of products and services.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

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Chris Kanaracus

IDG News Service
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