Oracle Corp. agreed to buy NetSuite Inc. for $9.3 billion, among the largest acquisitions in its history, bolstering the business software maker's cloud-computing offerings, an area where it is racing to catch up to rivals.
The deal also reunites Oracle Chairman Larry Ellison with Zach Nelson, NetSuite's chief executive, who ran Oracle's marketing operations in the 1990s. Mr. Ellison is NetSuite's largest investor; entities owned by Mr. Ellison and his family held nearly 40% of NetSuite's shares, according to NetSuite's annual proxy statement filed in April.
Both companies provide run-the-business applications known as enterprise-resource planning software, but NetSuite is among the leaders in providing those offerings to customers via subscription-based, on-demand computing.
While Oracle has improved its own homegrown cloud products, it is battling companies such as such as Salesforce.com Inc. and Workday Inc. that deliver software and storage solely on the web, while also fighting to keep pace with industry giants including Microsoft Corp. and Amazon.com Inc. that have built huge businesses running customers' computing operations in the cloud.
The deal values NetSuite at $109 a share, a 19% premium to its closing price Wednesday of $91.57.
Oracle said it expects the deal to add immediately to its adjusted earnings in the first full year after closing.