Multinational computer technology company Oracle Corporation (
Oracle) is to acquire cloud-software provider NetSuite Inc. (NetSuite). Oracle, which has headquarters in Redwood City, California, United States, caters to around 380,000 customers in around 145 countries. The company offers an extremely wide range of services, from software and applications to database solutions and business intelligence offerings. According to Oracle’s website, the company plans to buy NetSuite for around $9.3 billion.
NetSuite, which was founded in 1998, has headquarters in San Mateo, California, United States. The company bills itself as “the world's leading provider of cloud-based business management software” and offers a range of products and services which extend to Software-as-a-Service (SaaS) and cloud options to financial software and ecommerce options. Oracle’s purchase makes NetSuite its second-largest acquisition to date.
The acquisition will strengthen Oracle’s cloud capability, but questions have been raised about the price which represents “11 times NetSuite's previous 12 months' revenue”, according to Nasdaq.com. The company “paid about 6.5 times trailing 12-month revenue for its last six similar acquisitions” Nasdaq.com added.
“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” explained Oracle’s Chief Executive Officer, Mark Hurd. “We intend to invest heavily in both products—engineering and distribution.”
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