Oracle Buys NetSuite

Oracle buys NetSuite for $9.3 bn. It seems like there is a lot of buying going on. Well who is going to be brave enough to take on Google?

On Thursday 28th July 2016 Oracle announced that it has entered into a definitive agreement to acquire NetSuite, the very first cloud company. The proposed transaction is expected to close in 2016. Until the transaction closes, Oracle and NetSuite will continue to operate independently.

Oracle said the two firms’ cloud applications were “complementary”.

According to BBC, this is not Oracle’s first move to expand its cloud services. The software company has bought Textura and Opower in the past few years.

NetSuite chief executive Zach Nelson said: “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.”

NetSuite has more than 30,000 customers, the bulk of which are small and mid-size companies.The company’s sales growth has been consistently strong — expanding at a rate of more than 30 percent for the past several quarters.