Oracle will buy NetSuite for $9.3b
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Oracle has arranged to acquire pioneering cloud company NetSuite for $9.3 billion.
The addition of NetSuite will enable Oracle to expand its ability to support customers of any size in more industries and more countries.
Oracle co-CEO Safra Catz said the company expects this acquisition to be immediately accretive to Oracle’s earnings on a non-GAAP basis in the first full fiscal year after closing.
The proposed transaction is expected to close in 2016. Until the transaction closes, Oracle and NetSuite will continue to operate independently.
“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” Oracle CEO Mark Hurd, said. “We intend to invest heavily in both products—engineering and distribution.”
“NetSuite has been working for 18 years to develop a single system for running a business in the cloud,” said Evan Goldberg, CRO and chairman of NetSuite. “This combination is a winner for NetSuite’s customers, employees and partners.”
Zach Nelson, CEO of NetSuite, said the company will benefit from Oracle’s global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries.
NetSuite was established in 1998 as the world’s first company dedicated to delivering business applications over the internet.
Today NetSuite provides a suite of cloud-based financials/Enterprise Resource Planning (ERP) and omnichannel commerce software that runs the business of more than 30,000 companies, organizations, and subsidiaries in more than 100 countries.
Questions & Answers
Q.What is the primary reason Oracle is acquiring NetSuite?
What is the primary reason Oracle is acquiring NetSuite?
Oracle intends to expand its ability to support customers of any size, in more industries and countries. The acquisition will allow Oracle to offer cloud applications to a wider market.
Q.When is the acquisition expected to be finalised?
When is the acquisition expected to be finalised?
The proposed transaction is expected to close during 2016. Until then, both Oracle and NetSuite will continue to operate independently as separate companies.
Q.How will this acquisition affect the existing products of both companies?
How will this acquisition affect the existing products of both companies?
Oracle states that both Oracle and NetSuite cloud applications are complementary and will coexist indefinitely. Oracle intends to significantly invest in both products, including their engineering and distribution.
Q.What kind of services does NetSuite provide to its customers?
What kind of services does NetSuite provide to its customers?
NetSuite offers a suite of cloud-based financials/Enterprise Resource Planning (ERP) and omnichannel commerce software. These solutions run the business operations for over 30,000 companies globally.
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