Aconex Agrees to $1.2 Takeover Offer From Oracle
December 17 2017 - 5:33PM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--Oracle Corp. (ORCL) has struck a US$1.2
billion deal to buy Australian project-management software provider
Aconex Ltd. (ACX.AU) in a further effort to shift its computing
services to the cloud.
The two companies on Monday said they had entered a binding
takeover agreement after the California-based company offered 7.80
Australian dollars (US$5.96) cash a share, valuing Aconex at A$1.6
billion.
Aconex offers an online collaboration platform for contruction
and engineering projects, allowing contractors, project managers
and builders to share documents and work together on projects.
With the addition of Aconex, Oracle said it could offer a
comprehensive cloud-based project management solution for a US$14
trillion industry.
"Delivering projects on time and on budget are the highest
strategic imperatives for any engineering and construction
organization," Mike Sicilia, senior vice president and general
manager of Oracle's global construction and engineering business
unit, said.
The bid price marks a 47% premium to Friday's closing price for
Aconex, and a more than fourfold jump on the 2014 initial public
offering price for Aconex's shares.
Aconex's board said it would unanimously recommend the offer to
shareholders and intends to vote a collective 14% stake in favor of
the bid. The deal is expected to close in the first half of next
year, subject to certain regulatory approvals.
"The Aconex and Oracle businesses are a great, natural fit and
highly complementary in terms of vision, product, people and
geography," Leigh Jasper, Aconex cofounder and chief executive,
said.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
December 17, 2017 17:18 ET (22:18 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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