Oracle to acquire Aconex for approximately $1.2 billion
Oracle announced it has entered an agreement to purchase Aconex, an Australian company that makes cloud-based collaboration software for construction projects, for approximately $1.2 billion.
Oracle has been working to realign itself around web-based products. Last year, for example, the company acquired Textura, an online management solutions business, for $663 million. Oracle combined its construction management software, dubbed Primavera, to create the Oracle Construction and Engineering Global Business Unit.
Aconex’s software is leveraged by infrastructure and building construction managers to keep tabs on the status and estimated cost of projects. The company currently houses offices in 30 countries, claiming to manage more than $1 trillion in construction projects. It is also among a handful of Australian techn businesses with a global footprint. Bloomberg reports only eight Australian-based tech companies are worth over $1 billion in comparison 21 mining companies.
The companies said they will work to provide on an end-to-end offering for project management and delivery, which helps customers plan, build and operate construction projects competently.
“Delivering projects on time and on budget are the highest strategic imperatives for any construction and engineering organization,” said Mike Sicilia, SVP and GM, construction and engineering global business unit, Oracle. “With the addition of Aconex, we significantly advance our vision of offering the most comprehensive cloud-based project management solution for this $14 trillion industry.”
Oracle said Aconex will aid its cloud-based construction software. Following the acquisition, which is expected to close in the first half of next year, Aconex will enter the company’s construction and engineering unit.
“The Aconex and Oracle businesses are a great, natural fit and highly complementary in terms of vision, product, people and geography,” said Leigh Jasper, founder and chief executive officer, Aconex. “As co-founders of Aconex, both Rob Phillpot and I remain committed to the business and are excited about the opportunity to advance our collective vision on a larger scale, and the benefits this combination will deliver to our customers.”
