Siebel Systems

History

• Rumors about sale of Siebel were spread in IT community from the moment of departure of the chief executive of the company Mike Lawrie. The head of Oracle Larry Ellison entered Siebel in the list of future acquisitions even during fight for merger of PeopleSoft.

• In September, 2005 it became known that the Oracle company purchased the competitor Siebel Systems for $5.8 billion Oracle paid $10.66 for one stock Siebel. After the message about purchase of share of Siebel on Nasdaq grew by $1.22 up to $10.35, and Oracle — fell to $0.27 up to $13.01.

The management of Oracle hopes that acquisition will allow the company to receive 4 thousand corporate clients and 3.4 million users of CRM systems.

According to the forecast of IDC, the market of these systems will grow from $8 billion in 2004 to $10 billion in 2010. At the time of the transaction, by AMR Research estimates, the world's largest developer of CRM systems was the SAP company which pressed the old competitor – Siebel and increased the market share in 2004 by 30% (in terms of money). A bit different digits are given in the report of IDC on the market of CRM for 2004: growth of the market is estimated at 8%, and enter into top three (in decreasing order of) Siebel, Oracle and SAP.