Monday, July 22, 2024

Oracle Acquires NetSuite for $9.3B in Cloud Application Push

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The blockbuster tech deals just keep on coming.

Oracle is acquiring NetSuite for $9.3 billion, or $109 per share, in an all-cash transaction, the companies announced today. The companies expect the deal to close later this year.

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“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” said Oracle co-CEO Mark Hurd, in July 28 announcement. “We intend to invest heavily in both products — engineering and distribution.”

NetSuite, the San Mateo, Calif.-based provider of cloud-based enterprise resource planning (ERP) and customer relationship management (CRM) software, among other business applications for midsized to large enterprises, had already partnered with Oracle in 2013. At the time, Oracle co-founder and now former CEO, Larry Ellison, had a controlling stake in NetSuite. (Ellison stepped down as CEO of Oracle in September 2014.)

According to a FAQ pertaining to the deal, Oracle said it “intends to utilize its broad footprint of complementary and leading cloud SaaS, PaaS, IaaS and DaaS capabilities to help NetSuite’s customers grow their businesses faster and more profitably.” NetSuite counts DocuSign, Williams Sonoma and The Boston Globe among its 30,000 customers. For the time being, it’s business as usual at NetSuite and the company’s offerings remain available for purchase.

“NetSuite will benefit from Oracle’s global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries,” said NetSuite’s CEO Zach Nelson in a statement. “We are excited to join Oracle and accelerate our pace of innovation.”

Today’s Oracle-NetSuite deal follows soon after another multibillion-dollar acquisition.

Last month, Microsoft announced it was acquiring LinkedIn for approximately $26 billion. “This deal is the next step forward for Office 365 and Dynamics as they connect to the world’s largest and most valuable professional network,” wrote Microsoft CEO Satya Nadella in a June 13 letter to employees. “In essence, we can reinvent ways to make professionals more productive while at the same time reinventing selling, marketing and talent-management business processes.”

In October 2015, Dell shattered records by announcing it was acquiring Hopkinton, Mass. data storage giant EMC for a whopping $67 billion. Last week, EMC CEO Joe Tucci announced that his company’s shareholders had voted in favor of the deal, clearing one of the final hurdles required to complete the mega-merger.

Pedro Hernandez is a contributing editor at Datamation. Follow him on Twitter @ecoINSITE.

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