Oracle Swallows Another Competitor, Aconex, for $1.2 Billion
Continuing its decades-long strategy of acquiring enterprise software companies, including key competitors, Oracle announced Sunday that it will purchase Aconex Limited for roughly $1.2 billion. Australia-based Aconex is a leading cloud-based system for managing construction projects, that ties in nicely with Oracle's own Construction and Engineering Cloud.
Builders use Aconex collaboration software for data management, document management, and cost management, across all stages of a construction project. Aconex reports that it has been used in projects valued at over $1 trillion, across 70,000 user organizations and in more than 70 countries.
Oracle is already entrenched in the market with a similar offering. The Oracle Construction and Engineering Cloud is used by builders for planning and scheduling large-scale construction projects. Oracle says its solution in combination with Aconex will provide the world's most comprehensive cloud offering for managing all aspects of construction projects.
Mike Sicilia, who serves as SVP and General Manager of Oracle's Construction and Engineering Global Business Unit, describes construction as a $14 trillion industry that depends on delivering projects on time and on budget.
Aconex Founder and CEO Leigh Jasper said his company is a great, natural fit with Oracle, and "highly complementary in terms of vision, product, people and geography." Jasper said that he and co-founder Rob Phillpot remain committed to the business and are "excited about the opportunity to advance their collective vision on a larger scale," with greater benefit for customers.
The acquisition, at a cash purchase price is A$7.80 per share, is expected to close in the first half of 2018, subject to Aconex shareholder approval as well as customary regulatory approvals. The transaction is valued at roughly US$1.2 billion, net of Aconex cash.
As part of the announcement, Oracle said that it is currently reviewing the existing Aconex product roadmap and will be providing guidance to customers.
In FAQs about the acquisition, Oracle said that it is committed to protecting and enhancing customer investments in Aconex solutions, and that it will continue investing in Aconex. With its added resources, Oracle expects it can add more functionality and capabilities to the Aconex offering, at a quicker pace. In addition, Aconex customers will benefit from "better integration and alignment with Oracle's other product offerings."