Oracle boosts cloud business with $9.3 bn acquisition
Software giant Oracle agreed to acquire cloud computing company NetSuite for $9.3 billion in cash, the companies announced Thursday.
Oracle will incorporate NetSuite’s cloud-based financial management and resource planning products into its offerings to corporate clients.
“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” said Mark Hurd, chief executive, Oracle. “We intend to invest heavily in both products –- engineering and distribution.”
“NetSuite will benefit from Oracle’s global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries,” said Zach Nelson, chief executive, NetSuite.
Oracle reported $37.0 billion in sales last year, while NetSuite’s revenues were $741.1 million.
NetSuite’s biggest shareholder is Oracle co-founder and chief technology officer Larry Ellison, with about 40 percent.
The transaction must clear regulatory hurdles and win support from a majority of NetSuite’s outstanding shares not owned by NetSuite officers or by persons affiliated with Ellison, the companies said.
Shares of NetSuite surged 18.2 percent to $108.25 in pre-market trade, while Oracle advanced 1.3 percent to $41.50.