ORACLE CORP current report, 16 January 2008

Oracle Corporation Form 8-K Summary

Business Context and Reporting Period

This Current Report on Form 8-K, dated January 16, 2008, discloses that Oracle Corporation entered into a definitive agreement to acquire BEA Systems, Inc. The transaction involves a merger between BEA and Bronco Acquisition Corporation, a wholly-owned subsidiary of Oracle.

Key Financial Metrics and Transaction Terms

  • Consideration: Each share of BEA common stock will be converted into the right to receive $19.375 in cash, without interest.
  • Equity Awards: Outstanding BEA equity-based awards for employees and consultants will be converted into Oracle common stock awards based on specific formulas. Awards held by non-employees will be converted to cash.
  • Termination Fees:
    • If BEA terminates the agreement under certain circumstances, it may owe Oracle a termination fee of $250,000,000.
    • If Oracle terminates the agreement under certain circumstances, it may owe BEA a reverse termination fee of $500,000,000.
  • Financial Statements: This filing does not provide Oracle's or BEA's revenue, profit, cash flow, margins, debt, or liquidity metrics. Investors should refer to the respective 10-K and 10-Q filings for operational financial data.

Material Changes and Conditions

The transaction is subject to several material conditions, including:

  • Approval by BEA stockholders.
  • Regulatory clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
  • Merger control laws of the European Commission and other applicable jurisdictions.
  • Other customary closing conditions.

Oracle has secured voting agreements with BEA CEO Alfred Chuang and stockholders affiliated with Carl C. Icahn (beneficially owning approximately 13% of BEA) to vote in favor of the merger.

Outlook, Risks, and Contingencies

Management notes that actual events may differ materially from forward-looking statements due to risks including the possibility that the transaction will not close or may be delayed. Other risks include general economic conditions, industry-specific conditions, and competitive factors. No assurances are given regarding the completion of the merger or its impact on financial results.

Key Facts for Investor Verification

  • Verify the final approval status of the merger by BEA stockholders and regulatory bodies.
  • Review the upcoming BEA proxy statement for detailed information on the merger terms and participant interests.
  • Monitor for any updates regarding the $250 million or $500 million termination fee obligations should the deal be terminated.
  • Consult Oracle's and BEA's most recent Forms 10-K and 10-Q for baseline financial performance data not included in this 8-K.