Oracle to Buy NetSuite for $9.3 billion
July 28 2016 - 8:49AM
Dow Jones News
By Jay Greene
Oracle Corp. agreed to buy NetSuite Inc. for $9.3 billion, among
the largest acquisitions in its history, bolstering the business
software maker's cloud-computing offerings, an area where it is
racing to catch up to rivals.
The deal also reunites Oracle Chairman Larry Ellison with Zach
Nelson, NetSuite's chief executive, who ran Oracle's marketing
operations in the 1990s. Mr. Ellison is NetSuite's largest
investor; entities owned by Mr. Ellison and his family held nearly
40% of NetSuite's shares, according to NetSuite's annual proxy
statement filed in April.
Both companies provide run-the-business applications known as
enterprise-resource planning software, but NetSuite is among the
leaders in providing those offerings to customers via
subscription-based, on-demand computing.
While Oracle has improved its own homegrown cloud products, it
is battling companies such as such as Salesforce.com Inc. and
Workday Inc. that deliver software and storage solely on the web,
while also fighting to keep pace with industry giants including
Microsoft Corp. and Amazon.com Inc. that have built huge businesses
running customers' computing operations in the cloud.
The deal values NetSuite at $109 a share, a 19% premium to its
closing price Wednesday of $91.57.
Oracle said it expects the deal to add immediately to its
adjusted earnings in the first full year after closing.
Write to Jay Greene at Jay.Greene@wsj.com
(END) Dow Jones Newswires
July 28, 2016 08:34 ET (12:34 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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