U.S. Markets closed

Oracle (ORCL) to Take Over CrowdTwist, Expand Portfolio

Zacks Equity Research

Oracle Corp. ORCL recently announced that it has inked a deal to acquire CrowdTwist, a provider of a customer loyalty and analytics platform, in an effort to expand into the rapidly-growing cloud market. However, the financial terms of the deal were kept under wraps. Post the deal conclusion, CrowdTwist will join the Oracle Customer Experience (CX) Cloud suite.

Headquartered in New York, CrowdTwist is a privately held company that offers predictive analytics, customer journey mapping, out-of-the-box integrations, and real-time solution for marketers in the cloud or on-premises.

According to Oracle’s executive vice president, Rob Tarkoff, "Oracle is taking a unique approach to the customer data platform space, enabling the application of intelligence across every customer touchpoint." Tarkoff further added, "CrowdTwist's leading loyalty platform will significantly augment Oracle CX's ability to help our customers build more meaningful relationships with their customers."

The move will result in the integration of CrowdTwist's customer loyalty platform with Oracle's Responsys, Eloqua and CX Unity platforms. This in turn will lead to effective, consistent and quick inferences. The connected experiences will enhance brand loyalty and aid the company in realizing its business goals.

Oracle Corporation Price and Consensus

Oracle Corporation Price and Consensus

Oracle Corporation price-consensus-chart | Oracle Corporation Quote

Synergies from Buyout

The companies will work together to capture, manage, integrate and enhance enterprise data such that they gain actionable insights. Oracle and CrowdTwist will aid the marketers in reducing time to answer queries and consequently focus on engaging customers. This will help Oracle in providing customers with cross-selling facilities, discounts, service adjustments to ensure consumer satisfaction and loyalties.

We believe that the acquisition will enable both the companies to better integrate technologies. With this buyout, Orcle’s customers will be able to experience greater flexibility in operations, enhanced multi-level security, increased awareness and greater administrative control.

The latest addition to its cloud platforms reflects Oracle’s focus on expanding cloud computing product portfolio inorganically. The strategy will enable the company to scale up cloud operations much faster. Through buyout synergies, Oracle hopes to challenge the dominant position of Amazon AMZN and Microsoft MSFT in cloud computing market.

Cloud Prospects

Cloud still remains an expanding market with significant prospects. In a recent report, Gartner projected the public cloud market to reach $411.4 billion by 2020. Per Technavio data, considering the government sector, the global cloud computing market is anticipated to see a CAGR of over 13% amid 2018 and 2022.

Exponential growth in the amount of data, complexity of data formats and the need to scale resources at regular intervals compelled several companies to turn to cloud computing vendors. Consequently, considering the growing need for cloud-based applications and software, we expect Oracle’s investments in this space to boost long-term growth.

Zacks Rank and a Stock to Consider

Oracle carries a Zacks Rank #3 (Hold).

A better-ranked stock in the broader technology sector is Keysight Technologies Inc. KEYS, flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Keysight has a long-term earnings growth rate of 10%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.