Bulletin: Oracle Corp. Ratings Unaffected By Its Planned Acquisition Of NetSuite Inc.

SAN FRANCISCO (S&P Global Ratings) July 28, 2016--S&P Global Ratings said today that its ratings on Redwood Shores, Calif.-based Oracle Corp. (AA-/Stable/A-1+) are not affected by the company's announcement that it has agreed to acquire unrated San Mateo, Calif.-based NetSuite Inc. for $9.3 billion ($8.9 billion net of NetSuite's cash). The acquisition is subject to regulatory approvals and NetSuite's shareholder vote, excluding shares held by Larry Ellison and his family, who hold a significant stake in the company. NetSuite primarily provides enterprise resource planning software on a subscription basis and has grown rapidly in recent years in line with other software-as-a-service providers. NetSuite generated $846 million in revenues and did not generate EBITDA in the 12 months ended June 2016.

...SAN FRANCISCO (S&P Global Ratings) July 28, 2016--S&P Global Ratings said today that its ratings on Redwood Shores, Calif.-based Oracle Corp. (##-/Stable/A-1+) are not affected by the company's announcement that it has agreed to acquire unrated San Mateo, Calif.-based NetSuite Inc. for $9.3 billion ($8.9 billion net of NetSuite's cash). The acquisition is subject to regulatory approvals and NetSuite's shareholder vote, excluding shares held by Larry Ellison and his family, who hold a significant stake in the company. NetSuite primarily provides enterprise resource planning software on a subscription basis and has grown rapidly in recent years in line with other software-as-a-service providers. NetSuite generated $846 million in revenues and did not generate EBITDA in the 12 months ended June 2016. We maintain our view of Oracle's financial risk profile as minimal. Based on the purchase price and lack of EBITDA contribution from NetSuite, we expect our adjusted leverage to rise to almost...

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