$9.3B NetSuite Buy A Sign Of The Times For Cloud Accounting


Cloud accounting and ERP services are having a big moment in the M&A space.

Rumors have flown about consolidation in the space, especially as a competition between SAP, Oracle, IBM, Microsoft, Salesforce and NetSuite heats up and talk of takeovers keeps everyone on edge.

Following all of this talk over the last couple of years, a major acquisition deal has finally been announced.

NetSuite will no longer fly solo thanks to a $9.3 billion purchase deal from Oracle, reports said on Thursday (July 28).

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.