Oracle to Buy NetSuite
Oracle has recently announced that it will acquire NetSuite, enterprise cloud service company, for about $9.3 billion in an all cash deal. Both of these companies offer cloud services aimed at enterprises; these services will “coexist in the marketplace forever.” The transaction is expected to close later this year.
This move signifies Oracles transition to cloud-based products, which comprise only 8% of its total sales in the fiscal fourth quarter. The acquisition of NetSuite signifies Oracle as a dominant figure within the cloud industry, alongside Microsoft Azure and Amazon Web Services.
This marks one of Oracle’s biggest acquisitions, following the purchase of PeopleSoft for $10.3 billion in 2005. Oracle has also purchased Opower for $532 million and Textura for $663 million in May of 216. These acquisitions exemplify a large transition into the cloud computing industry.
Founded in 1998, San Mateo, California based NetSuite provides enterprises with cloud based business management software. NetSuite allows enterprises to manage operations within a single system. Services offered include Enterprise Resource Planning (EPR) and Customer Relationship Management (CRM). Its customer base includes more than 30,000 companies, organizations, and subsidiaries in over 100 countries. Sales growth has been strong the last several quarters, expanding at a rate of about 30%.
Founded in 1977, Redwood City, California based Oracle offers a myriad of cloud applications and platform services. With a customer base of more than 420,000 customers across more than 145 countries, oracle is one of the largest software makers by revenue, second only to Microsoft. Recent acquisitions affirm Oracle’s place within the cloud industry.
Mark Hurd, Chief Executive Officer of Oracle, “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.”
Zach Nelson, Chief Executive Officer of NetSuite, “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.”
Evan Goldberg, Founder, Chief Technology Officer and Chairman of NetSuite.“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.”