Oracle to Buy Cloud Computing Firm for $1.5 Billion (ORCL)
Enterprise software giant Oracle Corporation ( ORCL ) on Monday announced it would buy cloud computing firm RightNow Technologies Inc. ( RNOW ) for a total of $1.5 billion.
The $1.43 billion asking price totals some $1.5 billion when including RightNow's cash and debt.
Oracle will pay $43 per share for RNOW, representing a nearly 20% premium over the stock's Friday closing price of $35.96.
Oracle shares posted small losses in premarket trading Monday.
The Bottom Line
Shares of Oracle Corporation ( ORCL ) have a .75% dividend yield, based on Friday's closing stock price of $32.12. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.
Oracle Corporation ( ORCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.