NetSuite

NetSuite Inc. - a company that provides access services to applications for medium-sized businesses on the basis of SaaS principles. NetSuite services at the end of July 2016 were used by more than 30 thousand companies of various sizes around the world. NetSuite provides access services to a business system that allows you to manage all enterprise activities, including CRM (Customer Relationship Management), ERP (Enterprise Resource Management), Ecommerce (E-Commerce) and PSA (Project Management). The data of customers using NetSuite business systems is stored in the data center of Level 3 Communications, one of the world's largest telecommunications companies.

History

2016

Shareholders NetSuite agreed to Oracle's sale for $9.3 billion.

On November 7, 2016, it became known that it received the approval of the required number of shareholders of the NetSuite for purchase by Oracle Corporation for $9.3 billion.

The deal was supported by 53% of shareholders NetSuite - owners of 21.78 million shares.

Merger of companies approved, (2016)

Among 53% the chairman of OracleLarri Larry Ellison who together with other members of the administrative board owns more than 45%^[1] is not considered ^[1].

According to Oracle, the deal ended on November 7, 2016. It does not include about 1 million separate shares of NetSuite subject to repurchase under the guarantee.

NetSuite shareholders demand a surcharge of $2 billion from Oracle

At the end of October 2016, the largest shareholder in the NetSuite - the investment company T. Rowe Price Group - demanded that Oracle pay about $2 billion for the purchase of NetSuite. In turn, Oracle said that it did not intend to offer more, since the amount of $9.3 billion (so much was estimated by the American cloud company) is already "the best." According to rumors, Oracle has changed its mind about buying NetSuite and now wants to purchase AMD.

In a letter to a special committee on Oracle's board, T. Rowe Vice President Robert Sharps said his company would not support selling NetSuite at below $133 per share. Oracle previously agreed to acquire for $109 per security. According to Sharps, this estimate is based on "several findings made by financial advisors from ad hoc boards committees based on price equity opinions."

Shareholders of NetSuite demand that Oracle pay $2 billion extra for the purchase of the company

Oracle CEO Mark Hurd said that his company has made NetSuite a "better and final" offer, and if shareholders refuse NetSuite it will "offer others." After this statement, the financial portal Zero Hedge wrote that instead of NetSuite Oracle Corporation could acquire the manufacturer of microprocessors Advanced Micro Devices (AMD). AMD shares rose 1.3% in price amid this information, Bloomberg said.

Bloomberg Intelligence analysts Anurag Rana and Mandeep Singh believe that Oracle's proposed purchase price is NetSuite consistent with estimates of other similar transactions, so "Oracle's board of directors has little leeway to raise the offer." According to experts, NetSuite shareholders will not be able to find a new buyer in a short time if they reject the agreement with Oracle.

Oracle's offer to purchase NetSuite shares expires on November 4, 2016. By this day, it will become known whether the transaction between the companies will take place or not.^[2]

Oracle buys NetSuite for $9.3 billion

On July 28, 2016 American , the corporate manufacturer software Oracle announced the acquisition of NetSuite for $9.3 billion. Through this transaction, the buyer will be able to strengthen its position in the fast-growing cloud services market.

Under the terms of the agreement, Oracle will pay $109 for each share of the NetSuite, which is 19% more than the value of securities by the close of the exchange on July 27, 2016. The statement on the sale of NetSuite provoked an increase in company quotes by 18.6% during trading before the official opening of the exchange session on July 28.

Oracle and NetSuite cloud applications complement each other and will always exist together in the market, "says Oracle CEO Mark Hurd. - We intend to invest heavily in both products - engineering and distribution.

It is planned to close the deal in 2016. It must first be approved by regulators and shareholders of companies. The boards of directors have already done so. Oracle expects that the purchase of NetSuite will increase annual profit immediately after the official execution of the purchase.

As notes the Bloomberg agency, as of March, 2016 the cofounder of Oracle Larry Ellison and his family own about 45.4% of common stocks of NetSuite. Allison's stake gives him control over the conclusion of large corporate transactions.

NetSuite CEO Zach Nelson, who led Oracle's marketing operations in the 1990s, said his company would benefit from Oracle's "global business and presence."

The purchase of NetSuite will be one of the largest Oracle acquisitions in the history of the corporation. The IT giant paid more (about $10.3 billion) only for the company PeopleSoft.^[3]

2010

In 2010, the NetSuite CRM solution was one of the twenty best CRM systems in the world according to Gartner analysts, and the NetSuite ERP product at that time was the only ERP system in the world distributed according to the SaaS model.

2008

In early 2008, NetSuite Inc. released a new product, NetSuite OneWorld. This product is intended for holdings, multinational corporations, companies with a large number of branches and representative offices. It allows you to keep records for multiple legal entities with automatic customizable consolidation.

In June 2008, NetSuite Inc. announced the purchase of OpenAir, the developer of the project management system OpenAir. This project management system also uses the concept of SaaS and occupies a leading position in the list of such systems.

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