The ERP provider Netsuite, who specializes mainly in cloud business, was reported to be acquired by Oracle for $ 9.3 billion, with $109 per share.
Mark Hurd, Oracle co-CEO, claimed Netsuite and Oracle business will make complementary on cloud service. Oracle plans to invest a great amount of sum on product design and sales & distribution divisions.
Oracle has been in an affinity with Netsuite since 90s. It was then Zach Nelson, Netsuite CEO, worked as Oracle CMO as well. In addition, Larry Ellison, founder of Oracle, is the most important shareholder of Netsuite. These two companies both specialize in ERP business.
In fact, Netsuite is a real cloud enterprise, while Oracle suffered some difficulties during cloud business transition. Oracle regards cloud business as important, that is why it acquired Netsuite. Netsuite will also benefit from the global scale of Oracle’after the acquisition is done.
Though the acquisition needs to be approved by supervision department and investors, Oracle still hopes this plan will be done by the end of 2016. This acquisition is definitely the biggest project that Oracle made this year. In May, Oracle acquired Textura for $ 663 million.
With a week when it announced to acquire Textura, Oracle acquired a software provider Opower for $532 million. To acquire these two companies, Oracle invested $ 1.2 billion in three working days.