Oracle is buying NetSuite for $9.3 billion (7 billion) in a deal that is expected to close within the next five months.
The deal, which had been rumoured for the past two weeks, will give Oracle greater access to the mid-market, which is NetSuite's area of focus, as well as handing it a solid software-as-a-services portfolio.
In a statement announcing the takeover, Mark Hurd, co-CEO of Oracle, said: "Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever. We intend to invest heavily in both products - engineering and distribution."
Zach Nelson, CEO of NetSuite, added: "NetSuite will benefit from Oracle's global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries. We are excited to join Oracle and accelerate our pace of innovation."
The two companies have had a close relationship for some time. Oracle already owned 40 per cent of NetSuite's shares prior to today's announcement and Nelson, who spent two years as Oracle's VP of marketing, is considered to be a proteg of Oracle founder and CTO Larry Ellison.
Indeed, Evan Goldberg, founder and CTO of NetSuite, said: "NetSuite has been working for 18 years to develop a single system for running a business in the cloud. This combination is a winner for NetSuite's customers, employees and partners."
The acquisition is expected to close at some point before the end of the year, subject to regulatory approval and NetSuite's other, non-Oracle-affiliated shareholders agreeing to sell their stakes in the company.
