On Monday, October 24th 2011 Oracle (NASDAQ: ORCL) announced that it was offering to buy RightNow Technologies, Inc. (NASDAQ: RNOW) for approximately $1.5 billion. Oracle will pay $43 per share, a nearly 20 percent premium to RightNow’s closing price of $35.96 on previous Friday. We see the combination as a positive for both RNOW and ORCL. This is the first sizeable cloud software deal for Oracle. Remarkably, the acquisition Enterprise Value (EV) multiple is within 5% of what would have been predicted for RNOW by our SaaS valuation model in March 2011.
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