Oracle to Acquire Aconex Cloud Platform for $1.2B

Oracle to Acquire Aconex Cloud Platform for $1.2B

Enterprise giant Oracle announced that it entered a binding scheme of implementing deed to acquire Australian cloud services provider for $1.2 billion. The acquisition will take place via AU$7.80 per share to be paid in cash, which Oracle said is a 47 percent premium on Aconex’s closing price of AU$5.29 per share on December 15.

The acquisition remains subject to the examination by an independent expert and a shareholder vote in late March. Describing Aconex as a “cloud-based solution that manages team collaboration for construction projects”, Oracle said it will combine with the company to offer end-to-end project management and delivery services for planning, building, and operating construction projects.

“Delivering projects on time and on budget are the highest strategic imperatives for any engineering and construction organisation,” SVP and GM of Oracle’s Construction and Engineering Global Business Unit Mike Sicilia said in a statement to the Australian Securities Exchange on Monday morning.

“With the addition of Aconex, we significantly advance our vision of offering the most comprehensive cloud-based project management solution for this $14 trillion industry.”

Aconex CEO and co-founder Leigh Jasper added that the companies have similarities in relation to “vision, product, people, and geography”.

The acquisition follows Oracle last week announcing a Q2 net income of $2.2 billion on revenue of $9.6 billion, up 6 percent year on year. Total cloud revenue was $1.5 billion during the quarter, up by 44 percent. Of this, $1.1 billion was attributed to software-as-a-service (SaaS), while platform-as-a-service (PaaS) and infrastructure-as-a-service (IaaS) brought in $396 million, up 21 percent.

Cloud and on-premises software brought in $7.8 billion in revenue during the three-month period, with the company saying its cloud business is “gathering momentum”. Oracle co-CEO Mark Hurd said Fusion ERP and Fusion HCM SaaS suite sales increased by 65 percent.

“Let me tell you who’s not moving off of Oracle: A company you’ve heard of that gave us another $50 million this last quarter. That company is Amazon. They’re not moving off of Oracle. Salesforce isn’t moving off of Oracle,” Hurd said.

“Let me tell you someone else who is not moving out of Oracle: SAP. They have the database called HANA. They’d like to move SuccessFactors. They’ve been trying to move off of Oracle for five or six years. All SAP large customers run on Oracle. Amazon continues to buy Oracle technology to run their business. Salesforce runs entirely on Oracle.”

 

 

Nathaniel Lewis

Nathaniel Lewis

Nathaniel Lewis is an editor at Solutions Review covering Mobile and Wireless enterprise technology.He has a degree in English from Saint Michael's College in Vermont and believes that the better we understand the technology of today, the more prepared we will be for the world of tomorrow.
Nathaniel Lewis

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