“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever. We intend to invest heavily in both products – engineering and distribution,” said Mark Hurd, Chief Executive Officer, Oracle.
Interestingly both Oracle and NetSuite are providers of applications and software that help in managing business operations and enterprise-resource planning. Oracle seems to be shifting its focus to more cloud based products, it recently acquired cloud software maker Opower for $532 million and construction contracts and payment management cloud services provider Textura for $663 million.
“We expect this acquisition to be immediately accretive to Oracle’s earnings on a non-GAAP basis in the first full fiscal year after closing,” said Safra Catz, Chief Executive Officer, Oracle.
According to several media reports, by acquiring NetSuite, which also provides customer relationship management software offerings to via subscription-based, on-demand computing, Oracle will be aided in competing against the likes of Microsoft and Amazon that run computing operations on the cloud as well as Workday and Salesforce that provide CRM software and storage on the cloud.
“NetSuite has been working for 18 years to develop a single system for running a business in the cloud. This combination is a winner for NetSuite’s customers, employees and partners,” said Evan Goldberg, Founder, Chief Technology Officer and Chairman, NetSuite.
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.
“NetSuite will benefit from Oracle’s global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries. We are excited to join Oracle and accelerate our pace of innovation,” said Zach Nelson, Chief Executive Officer, NetSuite.