REDWOOD SHORES and SAN MATEO, CA — Larry Ellison just got richer. Oracle announced today that it will buy NetSuite, the very first cloud company and co-founded by Ellison, for $109.00 per share in cash, or approximately $9.3 billion.
Shares in NetSuite closed at $108.41 on Thursday, up $16.84. Ellison holds a 39.8% stake in NetSuite, giving his shares a value of $3.7 billion. Ellison is also Executive Chairman of Oracle and his net worth is over $50 billion.
In October 1998, NetSuite was founded by Goldberg and Ellison as NetLedger and pioneered Cloud Computing, establishing the world’s first company dedicated to delivering business applications over the Internet. NetSuite now provides a suite of cloud-based financials / Enterprise Resource Planning (ERP) and omnichannel commerce software that runs the business of more than 30,000 companies, organizations, and subsidiaries in more than 100 countries.
“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” said Mark Hurd, Chief Executive Officer, Oracle. “We intend to invest heavily in both products – engineering and distribution.”
“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, Chief Executive Officer, Oracle.
“NetSuite has been working for 18 years to develop a single system for running a business in the cloud,” said Evan Goldberg, Co-Founder, Chief Technology Officer and Chairman, NetSuite. “This combination is a winner for NetSuite’s customers, employees and partners.”
Goldberg has a 2.8% stake in NetSuite and his shares are worth $260 million upon completion of the deal.
“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 Zach Nelson, Chief Executive Officer, NetSuite. “We are excited to join Oracle and accelerate our pace of innovation.”
The Board of Directors of NetSuite, based on the unanimous recommendation of the Transaction Committee, has unanimously approved the transaction. The Transaction Committee is composed solely of independent directors.