What happened to Aconex share price?
Shares in Aconex Ltd [ASX:ACX] rose 44% yesterday, on the back of a $1.6 billion takeover offer by US tech giant Oracle.
Why the share price rise?
Aconex supplies software services to the construction industry, specialising in mobile and online cloud collaboration for project information and management. Aconex’s expertise has contributed to projects of 70,000 organisations in more than 70 countries, with budgets totalling $1 trillion. Key Australian projects include the $6.1 billion Eureka Tower development in Melbourne, and the $2.1 billion Dampier to Bunbury natural gas pipeline.
Shares in Aconex dropped as low as $3.08 in February, after previously peaking at $8.28 in July 2016. The current price sits at $7.64 for the Melbourne-based company.
Oracle will offer $7.80 a share in a deal backed by the Aconex board. Aconex CEO Leigh Jasper, who will remain with the firm, said:
‘The Aconex and Oracle businesses are a great, natural fit and highly complementary in terms of vision, product, people and geography.’
Senior vice president and general manager of Oracle’s construction and engineering global business unit, Mike Sicilia concurred. He said the Aconex deal would ‘…significantly advance our vision of offering the most comprehensive cloud-based project management solution for this $14 trillion industry.’
Aconex shares have gained steadily as a result of the global infrastructure boom, closing at $5.29 on Friday.
What now for Aconex?
Shareholders will vote on the deal in March next year. And the takeover must also await approval by the Foreign Investment Review Board. Oracle expects to confirm the takeover by the middle of next year.
Junior Analyst, Money Morning