Oracle + Netsuite
Redwood Shores, Calif.â€”Jul 28, 2016
Oracle (NYSE: ORCL) today announced that it has entered into a definitive agreement to acquire NetSuite (NYSE: N), the very first cloud company. The transaction is valued at $109.00 per share in cash, or approximately $9.3 billion.
â€œOracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,â€ said Mark Hurd, Chief Executive Officer, Oracle. â€œWe intend to invest heavily in both productsâ€”engineering and distribution.â€
â€œWe expect this acquisition to be immediately accretive to Oracleâ€™s earnings on a non-GAAP basis in the first full fiscal year after closing,â€ said Safra Catz, Chief Executive Officer, Oracle.
â€œNetSuite has been working for 18 years to develop a single system for running a business in the cloud,â€ said Evan Goldberg, Founder, Chief Technology Officer and Chairman, NetSuite. â€œThis combination is a winner for NetSuiteâ€™s customers, employees and partners.â€
â€œNetSuite will benefit from Oracleâ€™s global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries,â€ said Zach Nelson, Chief Executive Officer, NetSuite. â€œWeÂ are excited to join Oracle and accelerate our pace of innovation.â€
The evaluation and negotiation of the transaction was led by a Special Committee of Oracleâ€™s Board of Directors consisting solely of independent directors. The Special Committee unanimously approved the transaction on behalf of Oracle and its Board of Directors.
The transaction is expected to close in 2016. The closing of the transaction is subject to receiving certain regulatory approvals and satisfying other closing conditions including NetSuite stockholders tendering a majority of NetSuiteâ€™s outstanding shares in the tender offer. In addition, the closing is subject to a condition that a majority of NetSuiteâ€™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.
More information about this announcement is available at www.oracle.com/netsuite.