Oracle will be giving $1.2 billion in cash to purchase the construction software developer named Aconex, an announcement today by both the companies. Located in Melbourne, Aconex’s cloud-based software enables teams those are working on building projects for sharing and collaborating documents. Oracle agreed in paying AUD $7.80 in cash per share for a total of $1.2 billion. The price showcases a 4% premium over closing price at Friday of Aconex of AUD $5.29 (almost $4.05).
This marks the second acquisition of Oracle of a cloud based construction software builder till date. Last year this company purchased Textura; a platform for contract and payment management, for $663 million and collaborated it with its self-construction software of management, called Primavera in forming the “Oracle Construction and Engineering Global Business Unit”.
Aconex was established in 2000, and currently has offices in almost 30 countries and claims that it has got used in managing construction projects of over $1 trillion. The company states that 5.5 million project users, those can communicate and manage about building documents, safety, progress, checklists, and other problems on mobile devices or desktops. Oracle tells that Aconex will be completing its cloud-based software on construction, which aims mainly on project planning, payments and management, and to create an end-to-end solution for the builders. After the close of the acquisition that expected to happen in the first half of 2018, Aconex will be a part of the construction and engagement unit of Oracle.
In a letter to the customers of Aconex, chief executive officer and co-founder, Leigh Jasper told that they expected continued investment of Oracle to Aconex will deliver more capabilities and functionality at a faster space, along with providing better alignment and integration with other products and offering from Oracle.
Construction projects include several moving parts, along with multiple suppliers and contractors, piles of paper oriented documents and complex building codes, and managing all of these can prove to be very expensive, in fact a time to swallow nightmare. Thus, this surely gives the tech industry an outset.