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Oracle Corp acquires Aconex for $1.19 billion

Oracle Corp acquires Aconex for $1.19 billion

U.S. software major Oracle Corp acquires Australia’s Aconex Ltd for $1.19 billion.

Aconex Ltd said on Monday that it had received a A$1.56 billion ($1.2 billion), in cash-per-share, the buyout offer from Oracle Corp, sending the target’s share price up 45 percent.

Aconex’s directors unanimously recommended the offer, with shareholders of the cloud-based project management company scheduled to vote on the bid at a scheme meeting in March next year, the company said in a statement.

Aconex specializes in web-based project management software that allows input from different teams. Its technology has been used on global projects that includes the Panama Canal extension.

Adam Lewis, Chairman of Aconex said in a statement, “Oracle’s offer of A$7.80 per share represents a significant premium and a high degree of certainty of value to shareholders through the cash offer and limited conditionality”.

While on the other hand, Aconex founders Leigh Jasper and Rob Phillpot, who both have holdings of just over 5 percent, declined to give any statement in the media.

Aconex, which focuses on construction projects, added that it would be liable to pay Oracle about 1 percent of the deal’s equity value as a break-up fee under certain conditions which it did not specify.

The U.S. software major said in a statement that the transaction was expected to close in the first half of 2018. The proposed transaction was one of two major U.S.-Australian technology deals unveiled on Monday, with Australian data centre provider Metronode receiving a A$1.04 billion ($791.2 million) bid from U.S. company Equinix Inc.