December 17, 2017 5:59 pm ET
MELBOURNE, Australia – Oracle Corp. has entered into a $ 1.2 billion deal for the purchase of an Australian project management software provider, the latest step in its recovery strategy from Amazon.com Inc. and Other companies selling cloud services.
The California-based software company said Monday that it had entered into a binding takeover agreement after offering A $ 7.80 ($ 5.96) in cash an action for
, valuing the Australian company at 1.6 billion Australian dollars.
Aconex offers an online collaboration platform for construction and engineering projects, enabling contractors, project managers and builders to share documents and work together on projects .
With the addition of Aconex, Oracle said it could offer a complete cloud-based project management solution for a $ 14 trillion industry.
"Delivering projects on time and on budget are the greatest strategic imperatives for any engineering and construction organization"
said senior vice president and general manager of the global division of construction and engineering of Oracle.
The 40-year-old company has spent billions of dollars over the past few years to turn itself into an online service seller. This has allowed him to become one of the few giants of pre-internet technology to succeed in the era of cloud computing, although Oracle's stock prices fell on Friday after announcing that growth of its activity in the cloud would be below expectations.
The price of the offer marks a premium of 47% over the closing price of Friday for Aconex, and a jump of more than four times compared to the price of initial public offering of 2014 for Aconex shares.
The Board of Directors of Aconex stated that it would unanimously recommend the offer to shareholders and intends to vote for a participation 14% in favor of the offer. The operation is expected to be completed in the first half of next year, subject to certain regulatory approvals.
"The activities of Aconex and Oracle are very complementary and very complementary in terms of vision, product, people and geography"
The co-founder and CEO of Aconex stated:
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