Australia-based company Aconex has announced that it received a A$1.56 billion (approximately $1.2 billion USD) buyout from U.S Software giant Oracle. The deal was an all-cash deal at the rate of A$7.80, which has increased the target share of Oracle by 45%.
Aconex said all its directors recommended this offer. Shareholders of Aconex will be meeting in March of next year to vote on the bid. Aconex is a cloud-based project management company with a platform for various to collaborate and share inputs. The technology has been used on global projects like the Panama Canal extension.
Speaking on this new development, Chairman of Aconex Adam Lewis said, “Oracle’s offer of A$7.80 per share represents a significant premium and a high degree of certainty of value to shareholders through the cash offer and limited conditionality.”
However, founders Leigh Jasper and Rob Phillpot, who have just over 5% in holdings, declined to comment. The cloud platform company has seen tremendous fluctuations in its share price, ever since it was listed in 2014. Aconex will be liable to pay Oracle about 1% of the deal’s equity value as a break-up fee, but under some specific conditions. Oracle did not specify what these conditions were.
In a statement issued by Oracle, it announced that the transaction is expected to close by the first half of 2018.
The Oracle-Aconex transaction was one of the two major U.S.-Australian deals. The second was the buyout of Metronode by U.S.-based company Equinix for A$1.04 billion ($791.2 million).