Oracle acquires Aconex
Cloud services seem to be a key element for big companies like Oracle these days, and Aconex is not their first acquisition in this field. Back in September 2016, Oracle signed an agreement to acquire Palerra, thus extending its Identity Cloud Service with an Innovative Cloud Access Security Broker (CASB). Now, adding Aconex and its products to the Oracle portfolio allows this American multinational tech corporation to provide the world's most comprehensive cloud offering for managing construction projects.
According to Oracle's press release, the Aconex project collaboration solution has been used in more than 70 countries so far by over 70,000 user organizations. The value of the projects that took advantage of it exceeds US$1 trillion. This cloud-based solution that manages team collaboration for construction projects will join Oracle's portfolio for around US$1.23 billion in cash. The company has been valued at US$5.96 per share, almost 50 percent more than the closing price on December 15.
Some formalities still need to be carried out, so the acquisition is expected to close in late March. Until then, an independent expert has to examine the deal, and then a shareholder vote should also validate it. However, the Board of Directors unanimously recommends the transaction, so everything should go smoothly.
Last week, Oracle announced a Q2 net income of US$2.2 billion and a revenue of US$9.6 billion, a 6 percent increase when compared to the same period of 2016. The revenue generated by the cloud services reached US$1.5 billion during the quarter, accounting for a solid increase of 44 percent when compared to Q2 2016.