Categories: eCommerceMarketing

Oracle Buys NetSuite For £7bn

Oracle has bought cloud ERP provider NetSuite for $9.3 billion (£7bn), with Oracle claiming the two companies will “coexist” in the marketplace “forever”.

“We intend to invest heavily in both products – engineering and distribution,” said Oracle co-CEO Mark Hurd. “Oracle and NetSuite cloud applications are complementary.”

NetSuite was founded in 1998, under the name of NetLedger, where it quickly became known as one of the first companies to sell ‘cloud’ applications for business.

Oracle Netsuite

“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, Oracle co-CEO.

The deal is valued at $109.00 per share, a premium on NetSuite’s closing price on Wednesday of $91.57. The deal should close by the end of 2016.

The purchase is one of Oracle’s largest acquisitions to date, only beaten by the $10.3 billion (£7.8bn) buy up of PeopleSoft in 2004. Oracle bought Sun Microsystems for $7.4 billion (£5.6bn) in 2010.

Close relationship

Larry Ellison, chairman of Oracle, and NetSuite boss Zach Nelson have had a close history. Nelson worked with Oracle in marketing during the 1990s, and Ellison has traditionally been a big investor for NetSuite.

“NetSuite will benefit from Oracle’s global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries,” said Nelson. “We are excited to join Oracle and accelerate our pace of innovation.”

In April, NetSuite opened new Benelux region headquarters in Amsterdam, an expansion that built on NetSuite’s investment in Europe.

The expansion of NetSuite’s business operations into Holland, Belgium and Luxembourg follows the opening of two European data centres late last year: one in Dublin and the other in Amsterdam.

The ERP provider will be supported in Benelux through a partnership with Deloitte in Belgium, and has already signed up customers such as startup airline Transavia, ESOMAR, and Qardio.

NetSuite further announced a version of its OneWorld product specifically designed for the Benelux region.

Take our cloud quiz here!

Ben Sullivan

Ben covers web and technology giants such as Google, Amazon, and Microsoft and their impact on the cloud computing industry, whilst also writing about data centre players and their increasing importance in Europe. He also covers future technologies such as drones, aerospace, science, and the effect of technology on the environment.

Recent Posts

Blue Origin Mission Successfully Tests Lunar Gravity

This week Blue Origin's 29th New Shepard flight tested roughly two minutes of lunar gravity…

2 days ago

Amazon Readies Release Of Revamped Alexa AI – Report

After delays to its Alexa generative AI voice assistant, Amazon invites press outlets to preview…

3 days ago

Former ASML Employee Accused Of Contact With Russian Intelligence

IP theft? Former Russian employee at both ASML and NXP denies allegations of contact with…

3 days ago

Google Joins Others In Ending Diversity Initiatives

Google becomes latest tech firm to scrap some of its diversity hiring targets, and cites…

3 days ago