Enterprise software giant Oracle Corporation (
) said Friday that it will acquire clinical trials software maker
Phase Forward (
) in a cash deal worth around $685 million.
In other news, an analyst at Piper Jaffray raised its price
target for Oracle shares.
Oracle said it would buy Phase Forward for $17 per share, which
represents a 30% premium over PFWD's Thursday closing price of
$13.08. Phase Forward's management and employees will be integrated
into Oracle's Oracle Health Sciences Global Business Unit.
Senior VP and GM of Oracle Health Sciences Neil de Crescenzo
said that "The life sciences and healthcare industries are
converging as they seek to control costs while accelerating
patient-centered innovation." Continuing, he noted that "Phase
Forward brings outstanding products and employees with significant
expertise to Oracle that will help enable the delivery of
personalized medicine and value-based healthcare."
In other Oracle news today, analysts at Piper Jaffray reiterated
their "Overweight" rating on ORCL, while raising their price target
for the stock to $32 from $30. Oracle shares had closed at $26.20
on Thursday. The firm also noted that "We are introducing
above-consensus FY12 EPS estimates due to our high level of
conviction that ORCL's EPS growth will exceed expectations
Oracle shares fell 10 cents, or -0.4%, in premarket trading
The Bottom Line
We have been recommending shares of ORCL since Mar.23, when the
stock was trading at $25.56. The company has a .76% dividend yield,
based on last night's closing stock price of $26.20.
Oracle Corporation (
) is a "recommended" dividend stock, holding a Dividend.com DARS™
Rating of 3.5 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here