Marketing cloud giants join forces as Oracle snaps up NetSuite
Marketing cloud giant Oracle has announced that it will acquire NetSuite for $9.3bn.
It's entered into a definitive agreement which is set to close this year, and the sale is worth about $109.00 per share in cash.
Both NetSuite and Oracle are big players in the cloud marketing landscape. Oracle has an entire cloud-based marketing package that focuses on automation and analytics and NetSuite has a strong marketing automation portfolio which includes an integrated CRM.
The products however won't be merging into one, as according to Oracle's co-CEO Mark Hurd: "Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever."
Oracle's marketing tech is already in competition with the likes of Adobe Cloud - which has already added many new features and functionality this year - IBM, and Salesforce. What will be interesting to see is what the investment means for NetSuite and Oracle's indvidual marketing cloud products and how they'll face up to competitors in the marketplace.
In NetSuite's case, the company been working on developing a single system to run a business in the cloud for the past 18 years, including sales, marketing, accounting and financal software. It'll perhaps benefit from being part of the Oracle family due to the cloud giant's vast reach and immersion in markets worldwide.
Indeed, that's one reason for the move as cited by Zach Nelson, NetSuite's CEO.
"NetSuite will benefit from Oracle's global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries," he said.
"We are excited to join Oracle and accelerate our pace of innovation."
This is the sixth acquisition this year for the Oracle Corporation and the third marketing-related one, having acquired both AddThis and Opower so far in 2016.
For further analysis, our sister side CloudTech has a more in-depth piece on the acquisition.