Oracle will acquire NetSuite for
about $9.3 Billion, or $109 per share in all cash deal. Both Oracle and
NetSuite’s cloud service offerings aimed at enterprise customers will continue
to operate and coexist in the marketplace forever.
Eighteen year old NetSuite claims a
dominant position in the cloud enterprise resource planning (ERP) space, which
includes offerings to help businesses track supply and demand, inventory,
accounting, customer relationships (CRM) and HR. The ERP industry has been an
active space for M&A and general consolidation over the past few years, and
Oracle in general has been an aggressive acquirer of smaller companies throughout
2016, with recent pick-ups including Opower and Textura.
Oracle acquisition of NetSuite
dwarfs its previous 2016 acquisitions in total deal value, though it still
ranks below the all-time leader, PeopleSoft, which Oracle acquired for a heady
$10.3 Billion way back in 2004, when such stratospheric values were even more
uncommon. While their service offerings are similar, NetSuite offers Oracle
access to companies sized smaller than its traditional clientele, and could
also give it some additional competitive edge in taking on primary rival Salesforce.
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