Paying $1.2 billion, Oracle has confirmed its acquisition of Aconex, a construction management software development firm. This move marks an ongoing interest in the construction space from Oracle.
The Australian firm is well established in the construction software space, offering cloud-based approach the company is active across the world with offices in 30 countries.
Both companies have said in statements that the deal is expected to close in first half of 2018, with Aconex stating that it would pay Oracle in the region of one per cent of the deal’s equity value, as reported by Reuters.
In a letter, Leigh Jasper, CEO of Aconex, said: “Together, Aconex and Oracle will provide the world’s most comprehensive cloud offering for managing all aspects of construction projects. The combination will enable us to bring end-to-end, digital, cloud based solutions to our customers around the world to help them effectively plan, build and operate large-scale projects.”
In 2016, Oracle bought the construction software firm Textura, beginning the cloud leader’s foray into this area. This acquisition set Oracle back $663 million, a figure dwarfed by the most recent sum.
“We expect that Oracle’s continued investment in Aconex will deliver more functionality and capabilities at a quicker pace, as well as provide better integration and alignment with Oracle’s other product offerings,” said Jasper.
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Earlier this month Oracle failed to meet Wall Street expectations for the third quarter, with shares dropping in after-market trading. Shared fell by close to 4 per cent, coming up short on expectations of strong growth of between 21 and 25 per cent. Regardless of this outcome, Oracle’s overall Q2 revenues increased with $1.52 billion pulled in by cloud.
With this cloud revenue injection, Oracle has achieved overall growth of six per cent, with overall revenues also surpassing expectations of $9.52bn and climbing to $9.6bn.