Responsys Inc. (NASDAQ:MKTG), Oracle Corporation (NYSE:ORCL), The Acquisition And Investigations

Posted by Chris Bell December 23, 2013 0 Comment 1412 views

Responsys Inc. (NASDAQ:MKTG)’s stock marked a fresh 52 week high of $27.49 embarking its previous high of $20.33 as the stock soared more than 40% during Friday’s trade. The stock gained $7.88 during the session and closed at $27.40. More than 25.16 million shares exchanged hands, which is quite significant compared to its 30 day average volume of 1.26 million shares. The market capitalization also surged to $1.41 billion.

The Acquisition

World’s leading business software maker, Oracle Corporation (NYSE:ORCL)’s announcement to acquire Responsys Inc. (NASDAQ:MKTG) for $1.39 billion made the stock of Responsys Inc. rally like never before. Oracle Corporation is eyeing to strengthen its cloud computing offerings with this acquisition, largely to counter web-based offerings of, Inc. (NYSE:CRM) and Workday Inc. (NYSE:WDAY) that offer products at much competitive prices than Oracle Corp.

Oracle offered the acquisition at a price of $27 per share which represents net of Responsys’ cash. The deal has been approved by the board of directors of Responsys Inc. and is expected to be completed by 1H14.

Responsys Inc. is a California based email and cross-channel marketing solutions provider that allows optimizing and automating marketing campaigns across various channels, including the Web, mobile, email, social media and display. Its Responsys Interact platform also facilitates targeted content by leveraging third-party applications and data from real-time sources. The company serves to diversified businesses mainly in North America, the Asia Pacific, and Europe.

The Investigation

With the Oracle’s acquisition offer approved by Responsys’ board of directors, numbers of law firms have announced investigations concerning the proposed acquisition. The investigation concerns whether Responsys Inc. (NASDAQ:MKTG)’s board has fulfilled its fiduciary duties to obtain fair consideration for Company shareholders by maximizing the value of the Company.

Some of the leading law firms having made such announcement include Faruqi & Faruqi, LLP;  Kirby McInerney LLP and Harwood Feffer LLP, among others.

About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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