Oracle plans to buy Textura, a provider of construction contracts and payment management cloud services, for $26.00 per share in cash, or approximately $663 million, net of Textura’s cash.
Textura offers its cloud services in a consumption model whereby the companies involved pay based on project activity. Further, usage of Textura’s cloud services creates a network effect that benefits all participants as more than 85,000 general and subcontractors are connected to the platform.
Oracle Primavera offers a complete suite of cloud solutions for project, cost, time and risk management. With this acquisition, Oracle Primavera and Textura will form the Oracle Engineering and Construction Global Business Unit offering a comprehensive cloud-based project control and execution platform that manages all phases of engineering and construction projects.
Oracle’s SVP and GM of Engineering and Construction Global Business Unit Mike Sicilia highlighted the need for digital modernization by engineering and construction industry that automates manual processes and embraces the power of cloud computing to easily connect the construction job site, reduce cost overruns, and improve productivity.
“Together, Textura and Oracle Engineering and Construction will have the most comprehensive set of cloud services in the industry,” he emphasized.
“Textura’s mission is to bring workflow automation and transparency to complex construction projects while improving their financial performance and minimizing risks,” said David Habiger, Chief Executive Officer, Textura. “We are excited to join Oracle and bring our cloud-based capabilities to help extend the Oracle Engineering and Construction Industry Cloud Platform.”
The Board of Directors of Oracle has unanimously approved the transaction. The transaction is expected to close in 2016, subject to Textura stockholders tendering 66 2/3% of Textura’s outstanding shares and derivative securities exercised prior to the closing (as required by Textura’s certificate of incorporation) in the tender offer, certain regulatory approvals and other customary closing conditions.