Boston, MA 07/03/2014 (wallstreetpr) – The revenue troubled enterprise software and computer hardware provider, Oracle Corporation (NYSE:ORCL), still puts the interest of its shareholders in front despite its many challenges. As such, the company is borrowing some funds through a bond sale to make its shareholders happy and also to finance its acquisition as well as retiring some notes set for maturity this month.
The company announced offering of $10 billion worth of bonds, making it the second megadeal this year, only dwarfed by $12 billion bond offering by iPhone maker Apple Inc (NASDAQ:AAPL) earlier this year. Apple Inc made the offering to finance a stock repurchase.
Following in the footsteps of Apple Inc, Oracle (NYSE:ORCL) also intends to use a portion of its bond sales to repurchase some of its shares in apparent efforts to return money to shareholders while improving the value of the remaining shares.
Financing Acquisition
While a portion of the bond proceeds will be channeled to shares repurchase, the company will use some of the funds for its deal to acquire hospitality software and hardware provider Micros Systems, Inc. (NASDAQ:MCRS).
Oracle Corporation (NYSE:ORCL) agreed to purchase Micros for $5.3 billion, in a move that will boost revenue in the company. The acquisition of Micros marks the second-largest deal that the company has performed in the past years. The company sealed a deal to acquire Sun Microsystems for $5.7 billion in 2012, being its largest deal.
The remaining portion of the bond proceeds will be channeled to retire some notes and other corporate purposes.
Revenue Challenge
As Oracle Corporation (NYSE:ORCL) makes acquisition deals, the company aims at boosting its revenue that has been on a worrying decline. The company has suffered revenue fall over the past years leading to 0.16 percent top line decline in 2013. However, the acquisitions open up new revenue streams for the company, which should not only result in the revenue boost but also a positive impact on the bottom line.
The $10 billion bond offer is the first one to be performed by Oracle Corporation (NYSE:ORCL) this year. It raised about $3 billion in the bond market last year.
