Oracle plans to acquire BEA Systems a middleware developer for $8.5 billion in a cash deal, the company announced Wednesday.

Under this deal, which is expected to close by the middle of the year 2008, Oracle agreed to pay nearly $19.38 per share. That purchase price is above Oracle’s initial offer of $17 a share, which BEA had rejected earlier, saying that it would need $21 a share for any party to enter acquisition talks with the company.

This would make Oracle to substitute it’s fusion middleware with better middleware product out in the market.