Business software giant Oracle announced plans Friday to boost its cloud services with a $1.5 billion acquisition of Responsys.

Responsys, which like Oracle is based in California, was formed in 1998 to provide software that would enable marketers to design, execute and manage email campaigns.

The group claims more than 450 clients in a range of sectors and had 2012 revenues of $163 million.

Oracle said in a statement the deal "creates the world's largest modern marketing cloud."

The deal, approved by both boards, calls for Oracle to pay $27 a share -- about 38 percent higher than the previous closing price for Responsys.

Oracle will combine the new acquisition with Eloqua, which it bought a year ago for $871 million.

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