Proactive Investors - Run By Investors For Investors

Rumors of Oracle acquiring NetSuite come and go, says analyst

An acquisition could leave NetSuite's infrastructure, management largely in place, but it's anyone's guess
According to market rumors, Oracle might acquire NetSuite
According to market rumors, Oracle might acquire NetSuite

If Oracle Corporation buys out NetSuite Inc., the deal could actually leave the acquired company with relative managerial freedom, suggests one technology analyst. Rumors are swirling of late around the potential for such a deal.

JPMorgan analysts are suggesting this week that a deal could be on its way. NetSuite stock was rising Wednesday, possibly linked to such speculation.

After speaking with partners in the "NetSuite ecosystem," JPMorgan analysts believe the company has large deals of its own in its pipeline, TheFly reported.

Timing for the deals remains uncertain, the analysts added in comments cited by TheStreet.com.

That said, one analyst cautions that the gossip might not reflect reality. 

“In my view, there would be some overlap in the functionality” of Oracle and NetSuite’s offerings," said Gartner Managing VP Chad Eschinger.

As well, he suggested that if an acquisition were to happen, NetSuite might maintain some differentiation in their business culture. These kinds of buyouts do sometimes leave management, the IT team and infrastructure of the company being acquired largely in place. It’s not unheard of for an acquired firm to remain relatively autonomous after a buyout.

This is far from the first time that gossip has swirled around Oracle and NetSuite.

“This rumor has been around for a while, coming and going for five or six years,” said Eschinger, whose team of analysts focuses on software markets and Enterprise Business Solutions.

Thanks to previous acquisitions by Oracle, NetSuite has been in the back of people’s minds as a way for Oracle to delve into cloud-based ERP, he added.

Proactive Investors reported on the rumors of the potential deal on July 21, ahead of NetSuite’s forthcoming financial results. Read more here.

 

View full ORCL profile View Profile

Oracle Timeline

Related Articles

Data stream
November 28 2018
The firm recently reported wider margins and a narrowed loss in its first half, with chairman John O'Hara saying the company was expecting to enter profitability in the full 12 months
Procurement services cogs
October 04 2018
Revenues in the latest half-year rocketed 254.5% to £596,000, more than the entirety of 2017
Dancing Sikh
April 12 2018
With 4bn tickets sold each year for Bollywood films, it is little wonder that India is taking an interest in GrooveME's hologram technology but that same technology can bring a bit of India to places such as Thetford
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use