News
Oracle To Buy Cloud Platform Aconex for $1.2 Billion
- By Gladys Rama
- December 19, 2017
Oracle is expected to acquire Aconex, a provider of cloud-based collaboration solutions for the construction industry, for $1.2 billion U.S. or $7.80 per share.
Announced earlier this week, the acquisition will fold the 17-year-old Aconex into Oracle's Construction and Engineering Cloud unit. Based in Australia, Aconex is a leading provider of cloud-based project management products for businesses in the construction, energy and infrastructure markets.
"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."
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.