Oracle buys NetSuite in a deal valued at about $9.3 billion to expand into the fast-growing cloud market. Bobbi Rebell reports.
Technology company Oracle is buying cloud business NetSuite in a deal worth about $9.3 billion. At $109 per share, that is a 19 percent premium to Wednesday's close. Steve Koenig of Wedbush Securities: (SOUNDBITE) STEVE KOENIG, SENIOR EQUITY ANALYST, WEDBUSH SECURITIES, (ENGLISH) SAYING: "It's one of Oracle's largest deals in the recent past. But, the deal itself, I would hardly call surprising. It's consistent with Oracle's strategy, which is to increase its critical mass in the cloud, both through acquisitions and through internal development." NetSuite shares spiked on the news. Oracle has been refocusing its operations to the cloud-based model, and providing services remotely, via data centers, rather than selling installed software. NetSuite, founded in 1998 by a former Oracle executive, pioneered the cloud computing revolution.