US giant to buy Aussie Aconex
US technology giant Oracle is buying ASX-listed construction software provider Aconex in an all-cash $1.6 billion deal as it expands further into the cloud computing market.
New York-listed Oracle will acquire all shares in the Melbourne-based Aconex at $7.80 each, or a 47 per cent premium to its Friday closing price of $5.29.
Shares in Aconex yesterday surged nearly 45 per cent on the news and were trading at $7.63 by 12.30pm.
The two companies will jointly provide an end-to-end solution for project management and delivery for construction projects.
“The Aconex and Oracle businesses are a great, natural fit and highly complementary in terms of vision, product, people and geography,” Aconex chief executive Leigh Jasper said in a statement yesterday.
Oracle’s general manager for global construction and engineering business unit Mike Scilia said the addition of Aconex would take the global giant closer to its vision of offering the most comprehensive cloud-based project management solution for the $18.31 trillion construction industry.
Founded in 2000 by Leigh Jasper and Rob Phillpot, Aconex provides cloud-based and mobile collaboration software for the construction industry.
The company listed on the ASX in December 2014 and has now grown to 47 offices across 23 countries, pushing its co-founders on to the BRW Rich List. Both the cofounders will remain with the company after it is absorbed into the Oracle network.
Aconex has faced a turbulent time over the past year, with its shares plunging nearly 50 per cent in January after a profit warning that followed several acquisitions and which has led to the company’s stocks being among the most shorted on the ASX.
But Aconex shares have since recovered after a strong second-half performance helped it achieve the bottom end of its guidance amid rising infrastructure investment globally.
The company said its board has unanimously recommended that its shareholders vote in favour of the Oracle offer, subject to an independent expert’s report and there being no other superior offer.
The takeover will also be dependent on Foreign Investment Review Board approval.