Business

Oracle Corp to buy Australia’s Aconex for $1.19 billion

A sign marks a building housing Oracle offices in Burlington, Massachusetts, U.S., June 21, 2017. REUTERS/Brian Snyder
Reuters Logo
By Jonathan Barrett

Sydney (Reuters) – Australia’s Aconex Ltd said on Monday it had received a A$1.56 billion ($1.2 billion), or A$7.80 in cash-per-share, buyout offer from U.S. software major Oracle Corp, sending the target’s share price up 45 percent.

Aconex said in a statement its 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 Australian company specializes in web-based project management software that allows input from different teams. Its technology has been used on global projects including the Panama Canal extension.

“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,” Aconex Chairman Adam Lewis said in a statement.

Aconex founders Leigh Jasper and Rob Phillpot, who both have holdings of just over 5 percent, declined interview requests on Monday.

The company has experienced massive share price fluctuations since listing in 2014 at A$1.90, and peaking at just above A$8.50 last year.

The share price rose 45 percent immediately after trading resumed on Monday to just below the A$7.80 cash-per-share offer.

Aconex, which focuses on construction projects, said 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.

Oracle 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.

($1 = 1.3074 Australian dollars)

(Reporting by Jonathan Barrett in SYDNEY. Additional reporting by Aaron Saldanha in Bengaluru, Editing by Stephen Coates)
Copyright 2017 Thomson Reuters. Click for Restrictions.

Related posts

PNG Chamber of Mines & Petroleum: Tough Times for Explorers

EMTV Online

MAMOTA DRUG RAID NETS THREE SUSPECTS

Tamara Agavi

Nike sales, forecast disappoint as Adidas gains ground

Reuters

Leave a Comment

error: Content is protected !!