USA tech giant Oracle is buying Australia's Aconex for $1.6 billion

A sign marks a building housing Oracle offices in Burlington Massachusetts U.S

New York-listed Oracle will acquire all shares in the Melbourne-based Aconex at $7.80 each, or a 47 per cent premium to its Friday closing price of $5.29.

Oracle has been looking to refashion its business around internet-based products.

Aconex, an Australian company with software for construction projects, is being bought by US-based global tech giant Oracle for $1.6 billion.

The share price rose 45 per cent immediately after trading resumed on Monday to just below the A$7.80 cash-per-share offer. The strategy was dealt a setback last quarter when cloud-computing sales missed analysts' estimates.

The company's biggest share price peak in the last five years was A$8.28 in July 2016.

The companies expect the transaction, which is subject to Aconex shareholder approval, to close in the first half of 2018. Oracle has been turning to acquisitions to accelerate its shift to the cloud, including last year's $9 billion purchase of NetSuite Inc.

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Oracle Corp. Sunday said it will acquire Aconex Ltd.

Aconex will prepare an advisory booklet to be delivered to shareholders in Febraury 2018, which will be followed with a meeting in March during which shareholders will have the opportunity to cast their vote on the scheme.

The proposed transaction was one of two major US-Australian technology deals unveiled on Monday, with Australian data centre provider Metronode receiving a A$1.04 billion ($791.2 million) bid from US company Equinix.

What happened to Aconex share price?

The run was sparked by a revenue forecast downgrade it blamed on market uncertainty caused by the Brexit vote and Donald Trump's election as U.S. President. "This enables them to get global scale pretty much instantly". "They'd need to have some pretty significant private equity backing, or something, to be able to make a competitive bid".

The deal represents a four-times return on Aconex's 2004 initial public offering of $1.90 per share.

Founded in 2000 by Leigh Jasper and Rob Phillpot, Aconex provides cloud-based and mobile collaboration software for the construction industry.

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