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ORACLE TO PAY $9.3B FOR NETSUITE Featured

Zach Nelson, NetSuite Oracle has agreed to buy NetSuite for a deal valued at about $9.3 billion. Redwood Shores-based Oracle will pay $109 per share in cash in a deal that had the industry rumor mill in high gear for the last few weeks. Oracle CEO Mark Hurd said the company will invest heavily in both product lines. The deal is expected to close this year.

There was no immediate word on the status of NetSuite founder Evan Goldberg, the company's CTO, or CEO Zach Nelson. Both are Oracle veterans and close to Oracle founder, Larry Ellison. NetSuite was founded by Ellison, who owned a majority of the shares, but  placed the securities in a separate corporations so he could not vote them. NetSuite, which pioneered cloud-based accounting, was founded in 1998 and Nelson held his job from 2002 and presided over its switch from its original name, NetLedger, when it was selling subscriptions for $5 per month to moving into parts of the Tier 1 financial software market. Over the last two years, Nelson appeared to be in a succession transition as he turned the president's job over to COO James McGeever. And at a reception at SuiteWorld in May he was unusually chatty in a way that suggested he was saying good-bye. Analysts had said any deal would be tricky—NetSuite shareholders would sue if the deal was too cheap; Oracle shareholders if it was too expensive. It had to be a Goldilocks price—just right.

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