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Oracle Buys NetSuite

Oracle (NYSE: ORCL) today announced that it has entered into a definitive  agreement  to  acquire  NetSuite  (NYSE:  N),  the  very  first  cloud  company.  The transaction is valued at $109.00 per share in cash, or approximately $9.3 billion.

“Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” said Mark Hurd, Chief Executive Officer, Oracle.

“We intend to invest heavily in both products – engineering and distribution.” “We expect this acquisition to be immediately accretive to Oracle’s earnings on a non-GAAP basis in the first full fiscal year after closing,” said Safra Catz, Chief Executive Officer, Oracle.

“NetSuite has been working for 18 years to  develop  a  single  system for  running  a  business  in the cloud,” said Evan Goldberg, Founder, Chief Technology Officer and Chairman, NetSuite. “This combination is a winnerfor NetSuite’s customers, employees and partners.”

“NetSuite will benefit from Oracle’s global scale and reach to accelerate the availability of our cloud  solutions  in  more  industries  and  more  countries,”  said  Zach  Nelson,  Chief  Executive Officer, NetSuite. “We are excited to join Oracle
and accelerate our pace of innovation.”

The evaluation and negotiation of the transaction was led by a Special Committee of Oracle’s Board   of   Directors   consisting   solely   of   independent   directors.The   Special   Committee unanimously approved the transaction on behalf of Oracle and its Board of Directors.

The  transaction  is  expected  to  close  in  2016.

The  closing  of  the  transaction  is  subject  to receiving certain regulatory approvals and satisfying other closing conditions including NetSuite stockholders  tendering  a  majority  of  NetSuite’s  outstanding  shares  in  the  tender  offer.
In addition, the closing is subject to a condition that a majority of NetSuite’s outstanding shares not owned by executive officers or directors of NetSuite, or persons affiliated with Larry Ellison, his family members and any affiliated entities, be tendered in the tender offer.
More information about this announcement is available at: oracle.com/netsuite.

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