California-headquartered global IT major Oracle has denied reports of holding discussions to acquire IT and consultancy giant Accenture.
According to media reports, an Oracle spokesperson said the rumour was “completely untrue” and the software giant had “never even considered” buying Accenture.
The rumour of Oracle eyeing Accenture surfaced on The Register’s website, which cited sources who said that Oracle has hired global specialists to explore the feasibility of buying Accenture, which has a market capitalisation of $77.17 billion.
“While these things have a habit of fizzling out there are some fairly serious players around the table,” the website said.
“If buying Accenture was a 100-metre race, Oracle is at the 10 to 15 metre stage now,” it added.
The news of Larry Ellison’s company eyeing Accenture comes in the wake of Oracle’s recent buys to strengthen its toehold in a fast changing technology space.
In July 2016, Oracle bought Netsuite for $9.3 billion in increase its presence in the cloud space.
Some experts cited Accenture’s market cap and a possible high valuation of its shares as a reason of Oracle shying away from the deal.
While Oracle specialises primarily in developing and marketing database software, it has been spreading fast in cloud engineered systems and enterprise software products.
Oracle, which earned $37.04 billion in revenues in 2016, is one of the leaders in the market for a relational database and competes with IBM, Microsoft, SAP, Sybase and Informix.
In contrast, the $32.9 billion Accenture is one of the leading management consultants. Formerly called Andersen Consulting, Accenture has grown in size through a series of acquisitions
Accenture, on the other hand, has completed its acquisition of Arismore, a privately held company in France that specialises in providing security services.
In recent months, Accenture also bought First Annapolis, Focus Group Europe, OCTO Technology and other smaller firms.
Some analysts say Accenture would give Oracle a much bigger presence in IT services, and not incidentally, help customers move new or existing applications to the cloud and help Oracle fend off competition from Amazon Web Services and other cloud-first companies like IBM.
IBM is expanding its cloud services business with the acquisition of Bluewolf Group, the largest service partner to Salesforce, which competes with Oracle in sales and marketing software.
Shares of Oracle’s India unit fell as much as 0.9% after opening in the green at the National Stock Exchange.