Oracle Corp. (NYSE: ORCL – $48.17) said it has entered into an agreement with Melbourne, Australia-based Aconex Limited, a leading cloud-based solution that manages team collaboration for construction projects, for about $1.2 billion, net of Aconex cash. The Aconex’s solution digitally connects owners, builders and other teams, providing complete visibility and management of data, documents and costs across all stages of a construction project lifecycle. The service has been used in over $1 trillion in projects across 70,000 user organizations in over 70 countries. Together, Oracle’s construction and engineering cloud unit, and Aconex will provide an end-to-end offering for project management and delivery that enables customers to effectively plan, build and operate construction projects. The transaction, approved, by the Aconex Board, is expected to close in the first half of 2018, subject to Aconex shareholder approval and customary closing conditions.
The shares of ORCL slipped after it disappointed Wall Street last week with lower-than-expected cloud growth and a less than stellar outlook for the next quarter. However, taking a longer-term view, I continue to like the shares in a well-diversified conservative account.