The acquisition will strengthen Oracle’s customer relationship management applications business, adding 3.4 million CRM users and 4,000 applications customers, Oracle said.
"In a single step, Oracle becomes the No. 1 CRM applications company in the world," Oracle CEO Larry Ellison said in a news release. "Siebel's 4,000 applications customers and 3.4 million CRM users strengthen our No. 1 position in applications in North America and move us closer to the No. 1 position in applications globally."
Thomas Siebel, chairman of Siebel Systems, said in a statement, “This is a very beneficial business combination that will allow us to be even more effective in delivering high-quality, leading edge solutions into the hands of satisfied customers.”
The board of directors of Siebel has voted in favor of the transaction. Oracle stockholder approval is not required.
The deal is expected to close in early 2006.