Oracle has announced that it will be acquiring Textura in a deal which is valued at $663 million, or around $26 a share.
Textura specialises in providing contract and payment cloud services for the construction industry. Oracle has decided to buy the company to improve its own engineering and construction cloud platform.
Textura processes around $3.4 billion in payments and is responsible for managing over 6,000 projects each month. The company's offers a shared database in the cloud which contract administrators, contractors, developers, subcontractors, consultants, title companies, and banks all have access to. It houses project budgets, contractors, invoices, payments, change orders and compliance documents.
Textura's cloud serves as a place in which all of the participants in a project from the funding to the construction can come together and access the shared assets necessary to complete a project. In the company's network there are about 85,000 general and subcontractors who are able to work alongside each other through the cloud.
Oracle is planning on combining Textura with its own Primavera business to create a colossal engineering and construction operation unit. The deal has yet to be finalised but it is expected to close this year.
This acquisition may be the first of many to come as Oracle like other tech companies is working to bolster its cloud. Brad Reback, an analyst at the investment bank Stifel, sees such a move in the company's future:
“While its too early to suggest the M&A spigot will be turned wide open, and while we have no knowledge of any M&A activity or discussions, deals like this always raise the question of who is next, and we have long suggested a number of SaaS players such as Castlight, Demandware, ChannelAdvisor, Paycom, Paylocity and Spunk, among others, would make for nice tuck-in acquisitions.”