A Titan No More

Consolidation in the BI space continues as Oracle snaps up Hyperion for USD 3.3 billion (Hyperion had USD 486M of cash, so effectively the deal is USD 2.8 billion). Hyperion’s year end is June and to year end 2006 its revenues were 765M (which was 9% up over 2005). Hence this is a fairly healthy valuation of about 3.7 times trailing revenues.

The acquisition of Hyperion’s dominant financial consolidation software and excellent Essbase OLAP technology makese sense for Oracle, whose large and aggressive sales channel will be able to exploit Hyperion’s strong technology. What is less clear is what happens to Brio. Brio never quite made it up into the same league as Business Objects and Cognos, and given that Oracle already has various reporting software of varying quality it is unclear whether Oracle will really exploit Brio or just let it quietly shuffle off to that crowded house in the sky for acquired BI software. Certainly Brio customers need to carefully think about their options.

At least this puts an end to the rumour that Oracle was going to buy Business Objects. Or does it?