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US: Oracle buying software rival for $9.3bn

 |  July 28, 2016

Oracle Corp. agreed to buy NetSuite Inc. for $9.3 billion, attempting to bolster the software maker’s cloud-computing offerings as it tries to catch up to rivals.

Oracle said it is paying $109 a share in cash, a 19% premium to NetSuite’s closing price Wednesday of $91.57.

While Oracle declined to address the matter, it said in its press release that the deal will only close if a majority of NetSuite shares not owned by Larry Ellison, NetSuite’s largest investor, and his family approve the deal. It also said a committee of Oracle’s independent directors have evaluated and negotiated the deal.

Rumors of the acquisition have been circulating for weeks, pushing NetSuite’s shares up from $72.19 just a month ago. The deal represents a premium, though it is still below NetSuite’s all-time high closing price of $115.57 hit in February 2014.

Full Content: The Wall Street Journal

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