News: Software giant doubles down on cloud strategy.
Oracle is acquiring Netsuite for $9.3 billion in a move to accelerate its cloud strategy.
The negotiation of the transaction was led by a Special Committee of independent directors from Oracle’s Board of Directors. This Committee unanimously approved the transaction on behalf of Oracle.
The transaction is expected to close in 2016, subject to regulatory approval.
It is subject to the condition that NetSuite stockholders tender a majority of NetSuite’s outstanding shares in the tender offer.
It is also subject to the condition that a majority of NetSuite’s outstanding shares not owned by executives at NetSuite or by anybody affiliated with Larry Ellison, be tendered in the tender offer.
In a statement, Oracle referred to NetSuite as the “very first cloud company.”
“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” said Mark Hurd, Chief Executive Officer, Oracle. “We intend to invest heavily in both products—engineering and distribution.”
“We expect this acquisition to be immediately accretive to Oracle’s earnings on a non-GAAP basis in the first full fiscal year after closing,” said Safra Catz, Chief Executive Officer, Oracle.
Zach Nelson, Chief Executive Officer, NetSuite said that NetSuite would benefit from Oracle’s global scale and reach, while founder, CTO and Chairman Evan Goldberg said that the combination would be a “winner for NetSuite’s customers, employees and partners.”
The buy is Oracle’s sixth major acquisition this year, after buying Opower, Textura, Crosswise, Ravello Systems and AddThis.