|| Oracle buys Textura for 663m USD|
that it is making an acquisition to (literally and figuratively) build
out its Primavera project management and billing business: it is buying Textura,
a provider of cloud-based contract and payment management solution... |
...specifically for the construction industry. The all-cash deal, Oracle
said, is worth $663 million, net of Textura’s existing cash.
Oracle said that together Primavera and Textura will form a new
global business unit, Oracle Engineering and Construction. The
transaction, which has been approved by the board already, should close
some time this year.
“The increasingly global engineering and construction industry
requires digital modernization in a way that automates manual processes
and embraces the power of cloud computing to easily connect the
construction job site, reduce cost overruns, and improve productivity,”
said Mike Sicilia, SVP and GM, Engineering and Construction Global
Business Unit, Oracle, in a statement. “Together,Textura and Oracle
Engineering and Construction will have the most comprehensive set of
cloud services in the industry.”
Textura, which went public in 2013, is one of the bigger providers of project management services to this industry globally.
It processes $3.4 billion in payments for over 6,000 projects
monthly, with over 85,000 contractors and others connected to the
The problem that it’s solving specifically is to try to keep a better
handle on projects and specifically the budgets for them amidst the
tangle of companies and individuals involved in completing building
In general, the construction industry, perhaps because it is so
grounded in the concrete, has been one of the slower ones to be
disrupted, although others like PlanGrid and Fieldwire have also been tapping into new platforms to change how projects are designed and executed.
There has also been an uptick
more recently in investments in construction-related startups, and more
generally, there are a lot of developing trends in construction — from
more complex building teams through to new techniques — that will be
predicated on better technology to execute it.
For Oracle, adding Textura to its existing Primavera business
completes a chain of cloud-based services to help start, implement and
complete construction projects, as it outlined in this graphic:
Textura’s products and teams are all coming over in the deal.
“Textura’s mission is to bring workflow automation and transparency
to complex construction projects while improving their financial
performance and minimizing risks,” said David Habiger, Chief Executive
Officer, Textura, in a statement. “We are excited to join Oracle and
bring our cloud-based capabilities to help extend the Oracle Engineering
and Construction Industry Cloud Platform.”
This is Oracle’s 101st acquisition, according to Crunchbase.
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