Oracle boss Larry Ellison said buying Siebel helps propel the company, known mainly for databases,  in the market for applications and on-demand services.  The company’s president Charles Phillips added:  ‘Siebel's expertise with industry-specific customer-facing applications combined with rich analytics will not only serve as the centrepiece of our CRM strategy for Oracle Fusion Applications, but can also be used to extend our current customers investments today.'

According to Oracle, former Siebel stockholders electing to receive Oracle common stock will receive a combination of stock and cash because the stock portion of the consideration was oversubscribed. The pro rata allocation of cash and stock payable to the electing holders will be announced following receipt of the final election results, which are expected to be available on or about February 2, 2006. Former Siebel stockholders not electing to receive Oracle common stock will receive $10.66 per share in cash. Oracle intends to repurchase shares in the marketplace equal to the amount issued effectively making it a cash transaction.