Yesterday, Oracle announced that it went into an agreement with Aconex Limited (ASX: ACX), an established cloud solution in the field of team collaboration management for construction projects. Oracle will have $7.80 per share in cash, and the entire transaction has a valuation of about $1.2 billion (U.S.).
The ASX 200 listed public Australian company provides a digital connection between builders, owners, and other departments, along with cent percent data visibility and management. The data includes all related documents and expenses across every stage collectively of a construction project lifecycle. The cloud solution has been used for more than $1 trillion in projects of about 70,000 use organizations in over 70 countries.
This partnership will include end-to-end project management offering and delivering solutions for effective planning, building, and operation.
Oracle’s Mike Sicilia said, “With the addition of Aconex, we significantly advance our vision of offering the most comprehensive cloud-based project management solution for this $14 trillion industry.” He is the SVP and GM of the company’s Construction and Engineering Global Business Unit.
Regarding the agreement, Leigh Jasper, the founder and CEO of Aconex, says, “The Aconex and Oracle businesses are a great, natural fit and highly complementary in terms of vision, product, people, and geography.” He didn’t hold back in expressing his excitement about the opportunity to proceed with the ‘collective vision’ on a larger scale, and for the benefits, the collaboration can provide.
Aconex’s Board of Directors recommends the deal unanimously. It is likely to come to a close by the first half of the coming year, subject to shareholder approval of Aconex, regulatory approvals, and other closing terms.