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Oracle buys NetSuite for $9.3bn

Steve Rogerson
August 4, 2016
 
Computer and database giant Oracle is buying fellow California-based cloud technology company NetSuite for approximately $9.3bn. The transaction is valued at $109.00 per share in cash.
 
"Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever," said Mark Hurd, chief executive officer of Oracle. "We intend to invest heavily in both products – engineering and distribution."
 
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.
 
"NetSuite has been working for 18 years to develop a single system for running a business in the cloud," said Evan Goldberg, founder and chairman of NetSuite. "This combination is a winner for NetSuite's customers, employees and partners."
 
The transaction is expected to close this year,
 
"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," said Safra Catz, chief executive officer of Oracle.
 
In 1998, NetSuite was a pioneer of the cloud computing revolution, establishing one of the world's first companies dedicated to delivering business applications over the internet. Today, it provides a suite of cloud-based financials, enterprise resource planning and omnichannel commerce software that runs the business of more than 30,000 companies, organisations and subsidiaries in more than 100 countries.
 
"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 Zach Nelson, chief executive officer of NetSuite. “We are excited to join Oracle and accelerate our pace of innovation."
 
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 Oracle co-founder Larry Ellison, his family members and any affiliated entities, be tendered in the tender offer.