Oracle Corporation (NYSE:ORCL) has revealed plans to acquire Ravello Systems, a company that is focused on enterprise support through cloud technology.
Ravello’s CEO Rami Tamir stated in a blog post that his firm, as well as its products, will now be under Oracle’s umbrella. Both firms are yet to reveal the terms of the deal, but a source familiar with the dealings revealed that Oracle will spend $500 million on the acquisition.
The Blog post by Mr. Tamir indicated that the two firms are confident that the deal will push their ability to deliver more value and allow them to attract more customers. He also said it will be a great opportunity for them to boost their technology at a rapid pace so as to offer the best service to customers. Tamir also thanked his company’s customers and confirmed that the company will continue to offer the same services to the customers.
The partnership between the two firms will be of great benefit to Oracle, which has been focused on speeding up its cloud business to compete more effectively with Amazon Web Services from Amazon.com, Inc. (NASDAQ:AMZN).
The acquisition will allow Ravello to be part of Oracle’s IaaS mission. The project will let users operate any workload on the cloud platform, and this should help smoothen the firm’s ability to serve customers rapidly and with ease especially over complex applications. Additionally, it will not involve costly and time-consuming implications according to Mr. Tamir. He also added that the firm will maintain its focus on adding value to its customers while at the same time coming up with new products and services.
Ravello raised $54 million in 2015, including $26 million collected in a round that had been announced in 2013. The firm is based in Palo Alto and has been doing very well since its launch in 2011. Oracle has also made other recent acquisitions such as Maxymiser, which makes cloud-based customer personalization software. The company also acquired another firm known as AddThis.