The Business software-maker Oracle Corporation agreed to buy the well-known cloud-computing NetSuite Inc. for $9.3 billion aiming to boost the company’s performance in the industry.
The both companies, Oracle and NetSuite, offers software applications that aid companies automate back end and administrative operations from technology to its labor force.
Oracle widely known for its cloud business, which supplies software and data on remote servers, that help company sell to clients who lack of budget for on-site hardware and technology associate.
SAP, Amazon.com and Microsoft, are the rivals of Oracle. Oracle through times focused on moving its business toward the cloud-computting model as sales of traditional software licenses struggle.
The acquisition could help the company, in building and selling more cloud-based business software in order to catch up with its adversary Workday and Salesforce.com, both specialize in cloud-based technology offerings.
The company has already buy Textura and Opower to augment its competitiveness in the market.
Oracle look forward to the acquisition to append to its adjusted income in the first full fiscal year after it closes.
Following a report of acquisition, NetSuites accounted strong second-quarter results, with income of 30 percent to $230.8 million and even beat estimates of the company.
The Oracle Executive Chairman Larry Ellison and his family possessed around 40 percent of NetSuite’s shares, based on a regulatory filing from the latter.
According to sosme report, the deal was spearheaded by a committee of independent directors from NetSuite.
NetSuite, founded in 1998, pioneered cloud computing by creating the first company dedicated to providing business applications over the internet, Oracle said. NetSuite’s chief executive, Zach Nelson, was responsible for Oracle’s global marketing from 1996 to 1998.
In June, Oracle said that revenue from its cloud-computing software and platform service accounted for 8 percent of overall revenue.