UPDATE: Credit Suisse Downgrades Responsys Following Oracle Acquisition Announcement

In a report published Monday, Credit Suisse analyst Michael Nemeroff downgraded Responsys, Inc. MKTG from Outperform to Neutral and increased the price target from $22.00 to $27.00.

According to the report, the downgrade followed Oracle’s Friday announcement stating their intention to acquire the company for $27/share, a 38% premium over Thursday’s closing price of $19.52 and an enterprise value of ~$1.5B - expecting the acquisition to close in 1H 2014.

Some highlights from the report included:
-”MKTG acquisition is unsurprising. A higher bid is unlikely, in our view.”
-”Given the healthy acquisition premium, we do not believe a higher bid will emerge, although we thought this asset would fit more neatly inside of IBM than ORCL for several reasons, including MKTG’s heavier services footprint, that led to a lower gross margin than most SaaS vendors.”

Shares of Responsys are down 1 percent in light of the downgrade.

Responsys closed on Friday at $27.12.