Oracle announced on September 12, 2005, that it would acquire Siebel Systems for $10.66 per share—about $5.85 billion in gross equity value. The deal closed in early 2006. The often-quoted $3.61 billion figure was the offer value after subtracting Siebel’s $2.24 billion cash balance, not the gross transaction value.
Did Oracle buy Siebel Systems?
Yes. Oracle announced the agreement on September 12, 2005, and later confirmed that the acquisition was completed. Oracle’s FAQ dates related legal-entity changes to January 31, 2006. The European Commission’s record describes the proposed transaction as Oracle acquiring sole control of Siebel through a share purchase.
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At announcement, the transaction was still subject to shareholder and regulatory approvals and other customary closing conditions. Oracle’s transaction overview said: “Until the deal closes, each company will continue to operate independently, and it is business as usual.”
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How much did Oracle pay for Siebel?
Oracle’s September 12, 2005 announcement set an offer of $10.66 per Siebel share and described the gross equity value as approximately $5.85 billion. Oracle also gave a net figure of $3.61 billion after deducting Siebel’s stated $2.24 billion cash balance. These are announcement figures, and the net figure is not the same measure as the gross offer value.
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| Reported figure | What it represents |
|---|---|
| $5.85 billion | Approximate gross equity value of Oracle’s September 2005 announced offer. |
| $3.61 billion | Offer value net of Siebel’s stated $2.24 billion cash balance, as reported by Oracle at announcement. |
| $5.921 billion | A later preliminary purchase-price estimate in SEC-filed proxy materials. It included assumed options, exchanged restricted awards, and estimated transaction costs, so it used a broader accounting scope than the headline offer value. |
The $5.921 billion preliminary estimate is therefore not a revised per-share offer or a contradiction of the $5.85 billion announcement. It reflects additional purchase-price components in a different measure.
How could Siebel shareholders receive the offer?
Under the merger agreement, Siebel shareholders could elect cash or Oracle stock. The stock election was limited to 30% of Siebel common shares; if elections exceeded that cap, stock consideration was subject to proration. Oracle also reported that Thomas M. Siebel held approximately 7% of the company’s outstanding common stock and had agreed to vote in favor of the transaction.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why did Oracle acquire Siebel?
Oracle presented Siebel’s customer-facing customer relationship management (CRM) applications as a complement to Oracle’s enterprise resource planning (ERP), middleware, and database products. Oracle also said Siebel’s capabilities would contribute to Project Fusion CRM. These were Oracle’s stated strategic rationale and projected benefits, not independent proof of how the combined products performed afterward.
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Sources
- Oracle’s September 12, 2005 announcement for the offer price, gross value, and cash adjustment.
- Oracle’s Form 8-K for the merger agreement and consideration terms.
- Oracle’s transaction overview for its stated rationale and operating-status statement.
- SEC-filed proxy materials for the preliminary purchase-price estimate and stock-election mechanics.
- Oracle’s completion announcement and Oracle’s FAQ for the acquisition’s completion and related legal-entity changes.
- European Commission decision record for the regulatory review.
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