Netsuite Agrees to $9B Oracle Takeover

Oracle buys Larry Ellison's NetSuite

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Evan Goldberg Founder CTO and Chairman

Oracle Corp (NYSE: ORCL) announced on July 28, 2016, that it will acquire NetSuite Inc. for approximately $9 billion. Oracle will pay $109 in cash per share to NetSuite. This acquisition gives Oracle an incredible head start in the fast-growing cloud computing industry. Larry Ellison, Executive Chairman at Oracle, also stands to gain as he owned approximately 40% of NetSuite’s shares as of February 2016. This transaction reflects Oracle’s intent to continue moving into the cloud-computing business as traditional software license sales continue to decline. This deal will help Oracle catch up to competitors such as Salesforce.com that already offer cloud-based software to its customers. The company expects this deal to add to its earnings in the first full fiscal year after closing. Qatalyst Group acted as financial adviser to NetSuite while Moelis & Co served as financial adviser to Oracle. Wachtell, Lipton, Rosen & Katz provided NetSuite with legal counsel and Sullivan & Cromwell served as legal adviser to Oracle for this transaction.

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