News
Oracle Bolsters Its Cloud with $1.2 Billion Aconex Buy
Oracle recently announced its intent to acquire Australian software company Aconex in an effort to boost its industry-focused cloud offerings.
Founded in 2000, Aconex provides a cloud-based project collaboration platform aimed at the construction, energy and infrastructure industries. The acquisition, valued at $1.2 billion U.S. ($7.80 per share), will fold Aconex into Oracle's Construction and Engineering Cloud business.
"Together, Aconex and Oracle will provide the world's most comprehensive cloud offering for managing all aspects of construction projects," according to Leigh Jasper, Aconex co-founder and CEO, in a letter to Aconex customers. "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."Â
For Aconex, the deal promises to bolster its cloud platform by way of added functionality, faster updates and integrations with Oracle's software. For Oracle, the Aconex buy gives it a stronger foothold in the burgeoning construction industry, which it estimates to be worth $14 trillion.
The two companies expect the deal to close in the first half of 2018, pending shareholder and regulator approvals. The Aconex board of directors "unanimously" backs the acquisition, according to Oracle's announcement.
Though its headquarters are in Melbourne, Australia, Aconex has a significant global footprint, with over 850 employees spread across nearly 50 offices in 23 countries. Its customer base is even more widespread, numbering over 70,000 across 70 countries. Aconex estimates the total value of all of its customer projects at over $1 trillion.
So far, neither company has shared details about how the acquisition will affect Aconex's executive structure or global workforce. For now, the companies advise Aconex customers and partners to conduct business as usual, until further notice.
More information on the acquisition is available here.