Subsequent the company's (N) $109 per share, cash merger with Oracle (ORCL +2%) effective today. With doubt cast over the deal prior to formal disclosure late Friday that tender conditions were to be met, NetSuite shares had been trading around an unconvinced $94 level, though are consequently now to a halted $108.99.
Approximately 21.775M (20.4M required) unaffiliated shares tendered, representing 53.21% of total unaffiliated share count. Overall shares tendered amount to 62.3M, or 76.39% of total issued and outstanding shares.
To $92.89. Oracle's (ORCL +0.6%) offer for NetSuite (NYSE:N) at $109 per share is set to expire tomorrow should minimum tender conditions (20.4M out of 40.8M total unaffiliated shares) not be met beforehand.
Oracle's set a final, November 4, deadline for tender expiration involving the deal. Should minimum terms (20.4M affiliated shares, 40.8M unaffiliated shares) not be met, Oracle plans to terminate the arrangement.
Analyst Kash Rangan projects if this happens, NetSuite shares would fall dramatically. His current price target is $68, NetSuite's current price is hovering around $100.
Deal offered at $109 per share terms.
NetSuite (N -0.8%) and Oracle (ORCL -0.1%) are both are trading 7% lower since the plan was fist announced in late July.
Outlook for NetSuite's (N -0.2%) Q4 to furthermore not be provided, attributed to pending deal with Oracle (ORCL -0.6%).
FY 2016 revenue guidance had been set at $955M-$975M. Updated figures not provided.
Q3 results – revenue of $243.9M (+26% Y/Y, $6.01M below estimates), recurring revenue from subscription and support of $190M (+23% Y/Y), non-recurring revenue from professional services and other of $53.9M (+41% Y/Y), cash flows from operations of $62M (+126% Y/Y) and net income of $16.1M (vs. $2.6M Y/Y)
The 60-slide document identified 14 possible acquisition targets. Among them were Adobe Systems (NASDAQ:ADBE), whose market cap of $53.7B is above that of Salesforce, and Pegasystems (NASDAQ:PEGA), with a $2.3B valuation.
The list also included Demandware, which Salesforce ended up buying, and LinkedIn, which the company lost in a bidding war with Microsoft.
In a Bloomberg interview, Marc Benioff comments that Oracle's (NASDAQ:ORCL) NetSuite (NYSE:N) acquisition marks a "desperation move" and doesn't feel Oracle will become a stronger CRM competitor because of it. He goes on to cite Larry Ellison's largest NetSuite shareholder status and claims the company was something he simply wanted to have.
The $9.3B, $109 per share deal was announced in July, though some recent pushback by shareholder T. Rowe Price to the terms have complicated its closing.
Oracle reports Q1 2017 results on Thursday with its share price moderately lower (2.45%) since the NetSuite deal was disclosed. Salesforce (NYSE:CRM), meanwhile, has also realized issues of late, trading down 8% since releasing its Q2 report on the last day of August.
Oracle (ORCL -0.1%) and NetSuite (N +18%) are expected to "coexist in the marketplace forever" according to Oracle CEO Mark Hurd.
Today's deal signifies a move by Oracle to strengthen its cloud position in the ERP, CRM, e-commerce and PSA spaces.
Most notably, though, is NetSuite's command of the cloud ERP market. The company notes its solution is "the world's most deployed" and counts more than 30,000 customers in more than 160 countries.
The buyout immediately enables Oracle's access to NetSuite's clients, typically smaller and more medium-sized businesses than the larger enterprises Oracle has conventionally provided services to.
Merging Oracle's existing initiatives with NetSuite's platforms and clientele in these spaces registers Oracle increasingly competitive in an enterprise cloud market already filled with strong offerings from Salesforce, Microsoft, SAP, IBM and others.
Consequently, cloud players comparable in size to NetSuite pre-deal are now up against a much larger opponent.