New York: Software company Oracle Corp. said on Monday that it is buying RightNow Technologies Inc. for about $1.5 billion so it can offer a broader range of software and services that help businesses manage customer service. Oracle is offering $43 per share for the tech service company from Bozeman, Mont. That is a 19.6 per cent premium over RightNow's closing price of $35.96 on Friday.
On Monday, RightNow's stock rose $6.98, or 19.4 per cent, to close Monday at $42.94. RightNow's board has agreed to the deal, which is subject to shareholder approval. The company says it will stay in Bozeman. Oracle expects to complete the deal by late this year or early next.
RightNow's main product helps companies manage customers' questions and complaints. It is delivered over the Internet - or "cloud" - rather than by installing software directly on computers. The deal follows a smaller acquisition Oracle made when it bought InQuira to expand its selection of products that help companies keep their customers happy. Terms of that deal, announced in July, were not disclosed.
Shares of Oracle, which is based in Redwood Shores, California, gained 75 cents, or 2.3 per cent, to end at $32.87.
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