Oracle Buys Australia’s Aconex

Oracle Corp. agreed to buy Aconex Ltd., an Australian company that makes cloud-based collaboration software for construction projects, for A$1.56 billion ($1.19 billion) cash as it pushes deeper into new markets to gain more customers.

Australia's Aconex Ltd. said on Monday it had received a buyout offer from U.S. software major Oracle Corp that sent the target's share price up 45 percent.

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.

Oracle has been looking to change its business around internet-based products. The strategy was dealt a setback last quarter when cloud-computing sales missed analysts’ estimates.

The Redwood City, a Californian-based company, also gave a disappointing forecast for cloud growth in last week’s earnings report, which sent shares falling the most in three months. Oracle has been turning acquisitions to accelerate its shift to the cloud, including last year’s $9 billion purchase of NetSuite Inc.

Meanwhile, Aconex 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.

The Australian-based company’s board unanimously recommended the deal, the Melbourne-based company said in a statement. The company’s directors, who represent about 13.6 percent of the stock, will vote in favor of the bid in the absence of a superior proposal.

Aconex, which focuses on construction projects, said it would be responsible 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.

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