Oracle Buying ‘Cloud’ Business Software Provider NetSuite

By The Associated Press
The Associated Press
The Associated Press
July 28, 2016 Updated: July 28, 2016

NEW YORK—Business software maker Oracle is buying a similar company—one created by former Oracle executives—for $9.3 billion.

NetSuite’s specialty is providing software to businesses that lives in the “cloud,” rather than on companies’ own servers. Oracle wants to beef up its own cloud offerings as it competes with tech giants such as Amazon and Microsoft.

NetSuite was started in 1998 by Evan Goldberg, a former Oracle executive, with financial backing from Oracle’s billionaire founder Larry Ellison. Ellison, who stepped down as Oracle CEO in 2014, remains NetSuite’s largest shareholder. NetSuite CEO Zach Nelson also worked for Oracle in the 1990s.

Oracle CEO Mark Hurd said in a statement on Thursday that the two companies’ cloud tools fit well together and that Oracle will keep investing in them.

NetSuite Inc. stockholders will receive $109 per share, a 62 percent premium to the company’s Wednesday closing price of $67.42.

Stock of the San Mateo, California, company popped 18 percent higher to $107.98 in morning trading.

Shares of Redwood Shores, California-based Oracle Corp. slipped 19 cents to $40.74.

The transaction is expected to close this year.