NEW YORK (MarketWatch) -- Oracle Corp. Monday agreed to acquire Siebel Systems Inc. for $3.61 billion in cash and stock, putting to rest long-running speculation on Wall Street about Siebel's future.
The deal values shares of Siebel, which makes software used by companies to manage their customer relationships, at $10.66 each, a 17% premium to Friday's close at $9.13.
In early Monday trading, San Mateo, Calif., Siebel's stock leapt $1.16, or 13%, to $10.29 on heavy volume of over 39 million. Shares have ranged from $7.37 to $10.85 over the last 52 weeks and had an average daily volume of 9 million over the last 10 sessions.
Oracle, of Redwood Shores, Calif., saw its shares gain 15 cents, or 1.1%, to $13.43. Germany's SAP AG , another rival of Oracle, saw its U.S.-listed stock tack on 18 cents, or 0.4%, to $44.51.
The companies put the total value of the transaction at $5.85 billion, a figure that reflects Siebel's $2.24 billion in cash on hand. They expect to close the deal, which has already received the approval of Siebel's board, in early 2006 after Siebel shareholder approval.
The deal doesn't require the approval of Oracle shareholders.