Oracle has agreed to acquire cloud company NetSuite. The transaction is valued at US$109.00 per share in cash, or approximately $9.3 billion.
“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.”
Safra Catz, Oracle’s president added, “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,”
“NetSuite has been working for 18 years to develop a single system for running a business in the cloud,” according to Evan Goldberg, founder, chief technology officer and chairman, NetSuite. “This combination is a winner for NetSuite’s customers, employees and partners.”
The Board of Directors of NetSuite, based on the unanimous recommendation of the Transaction Committee, has unanimously approved the transaction. The Transaction Committee is composed solely of independent directors.
The transaction is expected to close in 2016. The closing of the transaction is subject to receiving certain regulatory approvals and satisfying other closing conditions including NetSuite stockholders tendering a majority of NetSuite’s outstanding shares in the tender offer.
In addition, the closing is subject to a condition that a majority of NetSuite’s outstanding shares not owned by executive officers or directors of NetSuite, or persons affiliated with Larry Ellison, his family members and any affiliated entities, be tendered in the tender offer.
Zach Nelson, CEO, NetSuite concluded, “NetSuite will benefit from Oracle’s global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries. We are excited to join Oracle and accelerate our pace of innovation.”
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