Under the deal, Oracle will pay $68 per Micros share, which is a 18 percent premium over the company's June 16 closing price, a day before Bloomberg reported that the deal was close to completion. This is the send time Oracle has attempted to acquire Micros, after a failed attempt six years ago that fell through at the last minute.
"Oracle has successfully helped customers across multiple industries harness the power of cloud, mobile, social, big data and the Internet of things to transform their businesses," Mark Hurd, an Oracle president, said in a statement. "We anticipate delivering compelling advantages to companies within the hospitality and retail industries with the acquisition of Micros."
The acquisition comes as Oracle attempts to boost its below-par earnings -- the company reported a four percent drop in profit year-on-year last week, while revenues were up a meager three percent. The deal expands Oracle's portfolio into purchasing systems through Micros' point-of-sales systems like Internet-connected cash registers. According to Micros, their systems are being used across 330,000 locations in 180 countries.
Micros has reported low double-digit revenue for the past three years and is expected to generate $1.37 billion in fiscal 2014, instantly improving Oracle's revenue this year.
The deal is expected to go through by the end of the year.