By Barry Eitel
SAN FRANCISCO (AA) – Enterprise technology giant Oracle announced Thursday that it was acquiring engineering software maker Textura for $663 million in order to push into the construction and architecture industries.
Oracle claimed that the two companies would form a new unit called Oracle Engineering and Construction. The deal is expected to close sometime later in 2016.
Textura, which services construction customers all over the world, processes $3.4 billion in payments for more than 6,000 construction projects each month.
The platform doubles as a network since more than 85,000 general contractors and subcontractors use the service.
“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,” Mike Sicilia, a senior vice president at Oracle and the new leader of the Engineering and Construction unit, said in a statement.
“Together, Textura and Oracle Engineering and Construction will have the most comprehensive set of cloud services in the industry.”
Analyst firm Markets Reports Store released a report last year claiming that the global construction industry would be worth $10.3 trillion by 2020, with the fastest growth in the Middle East — especially Saudi Arabia, Qatar and the United Arab Emirates — and Africa.
“Textura’s mission is to bring workflow automation and transparency to complex construction projects while improving their financial performance and minimizing risks,” Textura CEO David Habiger said 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.”
Textura went public in 2013. The $663 million price-tag is a 30 percent premium on Wednesday’s close.
Stock in Textura rose more than 30 percent amid the news while shares of Oracle dipped slightly throughout the day.
