Oracle announced today that it has entered into a definitive agreement to acquire NetSuite, a cloud computing company, in a deal valued at $109.00 per share in cash, or approximately $9.3 billion.
This acquisition is motivated by the desire to help Oracle gain market share in the fast-growing cloud computing business.
Netsuite’s stock closed Wednesday at $91.57. The deal is expected to close this year, said Oracle.
Both Oracle and NetSuite offer software applications designed to help companies automate back end and administrative operations, ranging from technology to human resources. Oracle’s cloud business, which stores enterprise software and data on remote servers, lets the company sell to clients with a limited budget for on-site hardware and technology staff.
According to Oracle, NetSuite, founded in 1998, pioneered cloud computing by creating the first company dedicated to providing business applications over the internet.
“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” said Mark Hurd, Chief Executive Officer, Oracle. “We intend to invest heavily in both products—engineering and distribution.”
The closing of the transaction 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, said Oracle.