Oracle cofounder, executive chairman, and chief technology officer Larry Ellison holds a roughly 45% share in NetSuite together with his family, according to Bloomberg.
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Oracle Corp. agreed to buy NetSuite Inc. for $9.3 billion, among the largest acquisitions in its history, bolstering the business software maker’s cloud-computing offerings, an area where it is racing to catch up to rivals.
NetSuite Inc. stockholders will receive $109 per share, a 62 percent premium to the company’s Wednesday closing price of $67.42.
The NetSuite package of products is complementary to Oracle’s cloud products and the companies’ cloud packages will “coexist in the marketplace forever”, Mark Hurd, Oracle’s CEO, said in a press release.
18-year old NetSuite claims a dominant position in the cloud enterprise resource planning (ERP) space, which includes offerings to help businesses track supply and demand, inventory, accounting, customer relationships (CRM) and HR.
Oracle said the deal will add to earnings as soon as it closes, which it expects in 2016.
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Oracle shares were up 1.6 per cent at $41.6 in premarket trading.
