NetSuite sold to Oracle
Steve’s breakdown: We suspect Oracle will keep the brand NetSuite but they’ll have to get the word out now that they have access to Oracle’s assets.
NetSuite spends around $6 million.
SAN MATEO, CA: In one of the largest acquisitions in its history, Oracle Corp. has agreed to buy cloud-software provide NetSuite for $9.3 billion, or $109 per share in an all-cash deal, the companies announced Thursday.
“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” said Mark Hurd, CEO, Oracle. “We intend to invest heavily in both products — engineering and distribution.”
The acquisition will give a big boost to Oracle in its effort to gain market share in the fast-growing cloud computing business.
“NetSuite has been working for 18 years to develop a single system for running a business in the cloud,” said Evan Goldberg, founder, chief technology officer and chairman, NetSuite. “This combination is a winner for NetSuite’s customers, employees and partners.”
Oracle’s executive chairman Larry Ellison holds positions on both sides. He and his family owned nearly 40% of NetSuite’s shares as of April, according to a regulatory filing from NetSuite, and he owned 27% of Oracle common shares according to a filing in September.
Oracle said the deal to acquire NetSuite was led by a committee of independent directors. The closing of the deal is subject to a condition that a majority of NetSuite’s outstanding shares not be owned by NetSuite executive officers or directors, or persons related to or affiliated with Ellison.