Published By : 18 Dec 2017 | Published By : QYRESEARCH
Oracle has been announced to buy Aconex, a developer of construction software, for a total of US$1.2 bn in cash. The payment had been decided after the companies agreed on a price of AU$7.80 per share. The price denotes a 47.0% premium over the AU$5.29 closing price of the construction collaboration software company. This is the second time that Oracle has acquired a cloud-based construction software company. In 2016, Textura, a contract and payment management platform had been purchased by Oracle for a US$663.0 mn. It had been combined with Primavera to institute the Oracle Construction and Engineering Global Business Unit.
Oracle Purchased Nine Companies Including NetSuite for US$9.3 Billion in 2016
Oracle has said that Aconex will help to fashion an end-to-end solution for builders as the latter complements the former’s cloud-based construction software focusing on project payments, management, and planning. Aconex has been expected to join Oracle’s engineering and construction unit post the closure of the acquisition, maybe in Q1 2018. Leigh Jasper, Aconex CEO and cofounder, has said that continued investment by Oracle will help his company to better align and integrate with the American multinational computer technology corporation’s other product offerings. He has also said that the investment will deliver more capabilities and functionality at a faster pace.
In the recent years, Net30, PlanGrid, Fieldwire, and several other startups have been launched as part of the modernization of the building sector. The tech industry has received an opening for growth due to a multitude of moving parts included in construction projects, such as complicated building codes.