The software giant, which to obtain its growing cloud computing business, NetSuite, offered another cloud software to offer $ 9300000000 dollars, the company said on Thursday.
Oracle transaction, at a price of $ 91.57 NetSuite action Wednesday to close closure in 2016, 19% of the expected premium will pay $ 109 in cash per share of NetSuite. NetSuite Council unanimously approved the transaction, the company said.
NetSuite shares (N) 9% on the first trading after Wednesday rises on speculation a deal was an increase of 18%.
Oracle (ORCL) shares, 0.12% of the original transaction was $ 40.98.
Redwood Shores, California. The Oracle cloud company beyond its traditional enterprise software offerings have grown. The addition of NetSuite business management software in the cloud, which used in more than 100 countries, including more than 30,000 companies, providing immediate assistance.
"It is complemented Oracle and NetSuite cloud applications and for all in the market," CEO Mark Hurd Oracle said in a statement said. "We intend to invest heavily in both products -. Engineering and Distribution"
San Mateo, California. The current president in 1998 NetSuite NetSuite CTO Evan Goldberg and Oracle founder Larry Ellison was co-founded by. Ellison, who resigned as CEO before 2 years, Oracle is now executive chairman. He and his family moved to filed documents with the Securities and Exchange Commission NetSuite remain major shareholders March 31, 2016 the outstanding shares, the holders of more than 45%.
The deal's closing is subject to a condition that a majority of NetSuite's outstanding shares not be owned by NetSuite executive officers or directors, or persons related to or affiliated with Ellison.
"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 NetSuite CEO Zach Nelson. "We are excited to join Oracle and accelerate our pace of innovation."
If completed, Oracle's purchase of NetSuite would be its largest deal since buying corporate software company PeopleSoft in 2005 for $10.3 billion.
Oracle has already been active in acquisitions that augment its cloud computing operations. In May, Oracle said it would pay $532 million for cloud-based utility software company Opower. The previous month, it acquired cloud service company Textura for $663 million and device data company Crosswise for a reported $500 million. And in February, Oracle bought Ravello Systems, which makes cloud testing software for a reported $500 million.
M&A activity in the software category has been booming recently with Microsoft's $26.2 billion bid for LinkedIn, announced in June, looming largest. Even before Oracle's bid for NetSuite, technology M&A so far this year had kept pace with the deals that led to a record-breaking 2015 in which tech deals surpassed $313 billion, according to consulting firm PricewaterhouseCoopers.
So far in the second quarter of 2016, there have been 15 deals greater than $1 billion announced, totaling $73.4 billion, a slight increase from the same period last year. "While we remain cautious on the likelihood of a repeat of full year 2015 deal activity (recalling that Q4 2015 delivered over $130 billion in deal value alone), we have no doubt that the remainder of 2016 will remain active for technology M&A," PwC said in a report out Thursday.
The ongoing cloud computing wars have helped fuel the activity. Last month, Salesforce.com acquired e-commerce software provider Demandware for $2.8 billion -- a shot across the bow of Oracle, which offers its own e-commerce platform.
NetSuite will grow Oracle's market share and add about $800 million in revenue, said Ray Wang, principal analyst and founder at Constellation Research. "Oracle as with every cloud vendor is seeking to grow their subscription revenues," he said. "NetSuite’s cloud approach fills holes in Oracle’s cloud strategy in key verticals. Commerce is a key battle ground going forward and NetSuite made significant progress with key brands."