NetSuite Inc. shareholders endorsed Oracle Corp.’s bid for the software provider, clearing the path for the $9 billion acquisition after weeks of conflict between a large investor and executives over the price tag.
The deal received approval from 53 percent, or 21.78 million shares, of NetSuite stockholders that were eligible to endorse the bid, Oracle said Saturday in a statement. The approval comes after T. Rowe Price, which recently held about 18 percent of the stock, publicly pushed back against the offer of $109 per share, saying $133 would be a fairer price. An Oracle executive had said the offer was final. The decision came from shareholders other than Oracle Chairman Larry Ellison and related parties who hold about 45 percent of NetSuite, along with executive officers and directors.
Oracle is counting on NetSuite to help the company’s shift to cloud-based services and better compete with rivals such as Salesforce.com Inc. and Microsoft Corp. NetSuite is one of the largest pure providers of these modern software features, having carved out a leadership position in the market for tools that manage customers’ core financials.
The deal is set to be completed on Monday, Oracle said. The tendered shares do not include more than 1 million separate shares tendered pursuant to the guaranteed delivery procedures set forth in the offer to purchase, the company said.
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SOURCE: Bloomberg
Brian Womack
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