By Robb M. Stewart
MELBOURNE, Australia--Oracle Corp. (>> Oracle Corporation) has struck a US$1.2 billion deal to buy Australian project-management software provider Aconex Ltd. (>> Aconex Ltd) in a further effort to shift its computing services to the cloud.
The two companies on Monday said they had entered a binding takeover agreement after the California-based company offered 7.80 Australian dollars (US$5.96) cash a share, valuing Aconex at A$1.6 billion.
Aconex offers an online collaboration platform for contruction and engineering projects, allowing contractors, project managers and builders to share documents and work together on projects.
With the addition of Aconex, Oracle said it could offer a comprehensive cloud-based project management solution for a US$14 trillion industry.
"Delivering projects on time and on budget are the highest strategic imperatives for any engineering and construction organization," Mike Sicilia, senior vice president and general manager of Oracle's global construction and engineering business unit, said.
The bid price marks a 47% premium to Friday's closing price for Aconex, and a more than fourfold jump on the 2014 initial public offering price for Aconex's shares.
Aconex's board said it would unanimously recommend the offer to shareholders and intends to vote a collective 14% stake in favor of the bid. The deal is expected to close in the first half of next year, subject to certain regulatory approvals.
"The Aconex and Oracle businesses are a great, natural fit and highly complementary in terms of vision, product, people and geography," Leigh Jasper, Aconex cofounder and chief executive, said.
Write to Robb M. Stewart at email@example.com
Corrections & Amplifications
This was corrected at 6:17 p.m. ET because the original incorrectly stated the deal price in the headlines.