Oracle Buys NetSuite for $9.3 Billion

Oracle has entered into a definitive agreement to acquire NetSuite for approximately $9.3 billion. 

Oracle and NetSuite cloud applications are “complementary,” said Mark Hurd, CEO Oracle, in a company statement, noting that Oracle plans to invest heavily in both products—engineering and distribution.

Founded in 1998, NetSuite provides a suite of cloud-based financials/ERP and omnichannel commerce software that runs the business of more than 30,000 organizations globally.

Observing that NetSuite has been focused for 18 years on developing a single system for running a business in the cloud, Evan Goldberg, founder, CTO and chairman of NetSuite, described the acquisition and resulting combination as “a winner for NetSuite’s customers, employees and partners.” Oracle’s global scale and reach will help NetSuite improve the availability of its cloud solutions in more industries and more countries, added Zach Nelson, NetSuite CEO.

The transaction is expected to close in 2016. The closing 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. 

The deal is also 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 Larry Ellison, his family members and any affiliated entities, be tendered in the tender offer.

Ellison and his family are understood to own around 40% of NetSuite shares.

More information about this announcement is available at www.oracle.com/netsuite.

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