Oracle announced earlier this week in a press release that it has entered into an agreement with Australia’s Aconex Limited, a cloud-based solution that manages team collaboration for construction projects, for A$7.80 per share in cash. The transaction is valued at approximately US$1.2 billion (A$1.55bn), net of Aconex cash.
The Aconex project collaboration solution digitally connects owners, builders and other teams, providing complete visibility and management of data, documents and costs across all stages of a construction project lifecycle. Aconex has been used in over US$1 trillion in projects across 70,000 user organisations in over 70 countries.
According to Oracle, the acquisition will provide an end-to-end offering for project management and delivery that enables customers to effectively plan, build, and operate construction projects.
“Delivering projects on time and on budget are the highest strategic imperatives for any construction and engineering organisation,” said Mike Sicilia, SVP and GM, construction and engineering global business unit, Oracle. “With the addition of Aconex, we significantly advance our vision of offering the most comprehensive cloud-based project management solution for this US$14 trillion industry.”
“The Aconex and Oracle businesses are a great, natural fit and highly complementary in terms of vision, product, people and geography,” said Leigh Jasper, founder and CEO, Aconex. “As co-founders of Aconex, both Rob Phillpot and I remain committed to the business and are excited about the opportunity to advance our collective vision on a larger scale, and the benefits this combination will deliver to our customers.”
The board of directors of Aconex unanimously recommends the transaction. The transaction is expected to close in the first half of 2018, subject to Aconex shareholder approval and certain regulatory approvals and other customary closing conditions.