Oracle says 'told ya so'Steve Rosenbush
Most tech deals end in disappointment. More often than not, mergers and acquisitions run into problems with changing technology, insurmountable cultural rifts, or the rise of unexpected shifts in the market. Oracle, which took a lot of heat for its controversial acquisition of PeopleSoft, now credits the deal for a blow-out quarter. The company's earnings release, issued this morning, says: "The rapid integration of PeopleSoft into our business contributed to the strong growth in both applications sales and profits that we saw in the quarter. The combination of increased organic growth plus a carefully targeted acquisition strategy have pushed Oracle's revenue and profits to record levels."
That success may well help justify the company's next target, which is rumored to be software maker Siebel. As one software banker said the other day: "It's the worst kept secret in the valley."