In a move to upgrade its cloud services, Oracle acquired cloud computing company NetSuite in a $9.3 billion deal.
The software company will pay $109 in cash per NetSuite share in the deal that is expected to be completed this year. Shares of NetSuite closed at $108.41 on Thursday while shares of Oracle increased to 0.6 percent at $41.19.
Oracle has been aggressively attempting to gain a hold on cloud services as rivals like Microsoft and Amazon make strong moves for corporate clients with cloud-based business offerings.
Even though cloud services revenue has been increasing at Oracle, it has not been able to lessen the impact of the decline in its software license revenue as companies are now more focusing on Internet or cloud-based applications.’
Constellation Research founder and principal analyst Ray Wang said that Oracle is acquiring a company that was the first to offer a full package of enterprise resource planning applications.
NetSuite has close ties with Oracle because the cloud computing firm was co-founded by NetSuite Chairman Evan Goldberg and Oracle’s Executive chairman Larry Ellison in 1998. Ellison and his family also own nearly 47 percent of NetSuite.
(Photo Source: Oracle.com/ Netsuite.com)