Oracle is spending $9.3 billion to acquire 'complementary' cloud provider NetSuite, with the transaction expected to close as early as this year.
“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever. “We intend to invest heavily in both products—engineering and distribution,” says Mark Hurd, Oracle CEO.
“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," says Zach Nelson, NetSuite CEO.
Fellow Oracle CEO Safra Catz says the acquisition will have immediate effect on Oracle’s non-GAAP revenue in the first fiscal year after closing. The $9.3 billion price tag is valued at $109 per share in cash.
While Oracle's Special Committee consisted of independent directors, who unanimously approved the transaction on Oracle and its Board of Directors' behalf.
Oracle has also said in a statement that NetSuite shareholders must approve the tender of most of its outstanding shares, excluding shares owned by Netsuite directors, executive officers and associates of Larry Ellison.
“NetSuite has been working for 18 years to develop a single system for running a business in the cloud. This combination is a winner for NetSuite’s customers, employees and partners," concurs Evan Goldberg, NetSuite founder, chairman and chief technology officer.