Oracle (NASDAQ:ORCL) announced on Tuesday that it will purchase software company Art Technology Group (NASDAQ:ARTG) in a deal worth $1 billion. Oracle is purchasing the company in an effort to boost its software applications in the e-commerce sphere.
Oracle's bid for ATG of $6 a share comes in as a 46% premium to the company’s $4.10 Monday closing price. The deal is expected to close in the first quarter of 2011.
ATG software is currently used by more than 1,000 companies to assist with transactions online, in stores, and via mobile devices. Customers include Vodafone Group (NYSE:VOD), AT&T (NYSE:T) and Best Buy (NYSE:BBY). During the third quarter of 2010, the company reported sales of $50.3 million, up 16% from the year prior.