August 2, 2016
For the second time in two months, a cloud-computing pioneer with significant e-commerce operations has been snapped up by a CRM industry giant in a multibillion-dollar deal. Late last week, Oracle acquired NetSuite for $9.3 billion. NetSuite—like Demandware, which was nabbed by Salesforce in June for nearly $3 billion—provides cloud-based ERP software for businesses and has a sizeable number of midsize-to-large clients using its e-commerce platform. Oracle, which mainly targets enterprises with its e-commerce solutions, will have access to smaller businesses with the acquisition of NetSuite.
“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” said Mark Hurd, CEO of Oracle. “We intend to invest heavily in both products’ engineering and distribution.”
The companies have been tightly aligned since NetSuite was founded in 1998 as one of the first firms to provide business services through the Internet. Oracle co-founder and former CEO Larry Ellison was an early investor in NetSuite and, before the acquisition, reportedly owned more than 45 percent of NetSuite stock. Both companies expect the deal to clear regulatory hurdles and close before the end of this year.