Oracle will pay $109 per NetSuite share in cash, according to a news release issued by Oracle on Thursday. That represents a 19 percent premium above NetSuite’s closing price on Wednesday.The deal surprises no-one. Netsuite has always been close to Oracle. Perhaps too close. An ex-Oracle executive founded Netsuite, its current CEO also worked for Oracle. Oracle boss Larry Ellison provided capital in Netsuite’s early days. He remained a significant shareholder with about 40 percent of the company’s stock.
Oracle was quick to inform the world that the deal was decided upon by a subcommittee consisting of only independent directors of the company.The news may not be good for customers. Oracle has a history of putting the price squeeze on customers after an acquisition. Not only that, but it has a rigid, old-school approach to licenses, renewals and support. Netsuite has always belonged to the more approachable SaaS world.