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"I have had all of the disadvantages required for success."

-Larry Ellison

Oracle To Acquire Textura

Financial Information
  • Enterprise Value                                         $663 Million
  • EV/Revenue                                               7.2x

Transaction Facts

  • Oracle (NYSE: ORCL) announced today that it agreed to buy cloud-services provider Textura (NYSE: TXTR) for $26 per share in cash. The transaction is valued at approximately $663 million, net of Textura’s cash.
  • Textura, whose portfolio of cloud-based collaboration and productivity tools are tailored to the construction industry, has 580 employees and processes $3.4 billion in payments for more than 6,000 projects each month.
  • Following the acquisition, Textura will merge with Oracle’s existing Primavera product-management software to form a single division focused on construction that manages all phases of the construction and engineering process.
  • The transaction is expected to close later this year.

M&A As an Accelerant for Cloud Growth

  • Cloud is Key: Oracle has long emphasized its cloud business practices, and investors and analysts have closely watched its earnings reports to ensure that the company is making progress on that front. In its most recent quarter (Q3 2016), the company boasted strong traction for its platform-as-a-service and software-as-a-service offerings even as overall revenue declined.
  • Finding and Filling Niches: Textura’s specific construction focus illustrates a common trend: many cloud software companies today are differentiating themselves with tight industry focuses. This can be a doubly effective strategy – targeted cloud software companies grow into an existing niche, then find themselves pursued by general cloud software providers like Oracle, IBM and SAP
    looking to fill gaps in their own portfolio.
  • Turning to M&A to Secure Growth: Oracle is no stranger to significant M&A, especially when targets promise an expansion of cloud capabilities or an established foothold in a strong market. In recent years it acquired advertising-analytics company Datalogix to pad its marketing cloud portfolio, while MICROS Systems provided an established presence in major verticals including hotel and retail.
  • Market Movers: Textura shares jumped more than 6 percent to end the day at $26 per share, even with the offer price, while Oracle shares closed down 1 percent. Textura also today reported its first quarter results, with revenue growing 28 percent to $24.7 million (beating analyst expectations) and tightening its loss to $1.5 million from $3.1 million one year ago.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
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