Cloud accounting and ERP services are having a big moment in the M&A space.
Following all of this talk over the last couple of years, a major acquisition deal has finally been announced.
While NetSuite has fought off a takeover for several years, according to reports, there is already a bit of unity between the two companies, as NetSuite CEO Zach Nelson used to work for Oracle Chairman Larry Ellison.
The takeover values NetSuite at $109 per share, reports said.
“Oracle and NetSuite cloud application are complementary and will coexist in the marketplace forever,” said Oracle Co-CEO Mark Hurd in a statement announcing the takeover plans on Thursday. “We intend to invest heavily in both products —engineering and distribution.”
NetSuite was a pioneer of the cloud-based, subscription-model ERP and financial management solution. Oracle has similarly pivoted to cloud-based solutions, as have rivals, with some zeroing in on specific corporate segments, like small and medium-sized enterprises.
Microsoft is one of those players, revealing earlier this year its small business-targeting ERP solution, built for companies that “need more than the simple financial and accounting tools they started with but aren’t yet ready to make a big investment in a customized enterprise resource planning system,” in the words of the company.