Oracle will incorporate Endeca technology across multiple enterprise solutions to strengthen its existing offerings, mainly in e-commerce, business intelligence, and Big Data.
On October 18th, Oracle announced an agreement to acquire Endeca Technologies, the largest of the remaining independent enterprise search vendors. The acquisition is expected to close before the end of 2011. Endeca is privately held, and no financial details of the transaction have been released. The deal comes eight weeks after Hewlett Packard (HP)’s acquisition of Endeca competitor Autonomy for a 10x+ multiple.
What are the implications? Enterprise search remains a critical technology. The three acquisitions are evidence of its importance, and while the larger stand-alone enterprise search companies have been acquired, there is a very diverse and healthy enterprise search vendor ecosystem which will keep innovating.
If enterprise search is so critical, why couldn’t any of the three largest make it on their own? One could say they did: Fast sold for $1.2 billion and Autonomy for $10+ billion, Endeca most likely went for a few hundred million.
Source: Outsell Insights October 31, 2011