Posted by: Shayna Garlick
Oracle applications, Oracle database administration, Oracle development
Oracle has done it again.
It’s making another acquisition — this time acquiring AdminServer, a provider of insurance policy administration software that will work in conjunction with Oracle’s existing insurance-related products. The deal has the potential to make Oracle a direct competitor with companies in the insurance market, including SunGuard and its current applications rival SAP.
“This acquisition is likely to shake up the status quo in the sleepy insurance software segment, and could possibly spark a fresh wave of mergers and acquisitions,” Madan Sheina, an analyst at Ovum, wrote in a research note.
Sheina also said that “this is the first time that a leading enterprise software maker has bought a specialist insurance software firm in order to strengthen its position.”
According to Information Week, AdminServer’s employees will merge with Oracle to form a “global business unit within Oracle focusing on the insurance industry.” They will offer software for managing multiple insurance product lines, rather than the commonly used legacy policy administration applications.
Financial details of the deal, which is expected to close by the end of the month, have not been disclosed. But Oracle did release this document, which explains everything from business rationale to product strategy to customer and partner benefits.
Although it’s been overshadowed by larger deals such as the BEA purchase, most seem to think this is a strategic and well thought-out acquisition. What do you think? Does this have the ability to put Oracle as a frontrunner in the insurance market?