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How Will Textura Enhance Oracle’s Position in Construction?

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Oracle acquires Textura

Earlier in this series, we learned how Opower’s acquisition will boost Oracle’s (ORCL) presence in the cloud and utility spaces. Prior to the acquisition of Opower (OPWR), which is based in Italy (EWI), Oracle announced the acquisition of Textura (TXTR). Textura provides cloud-based payment management services and sells billing software to the construction sector.

Oracle agreed to pay $26 per share for Textura, for an acquisition worth $663 million. Textura’s acquisition is expected to close in 2016 after company’s shareholders tender at least 66.7% of their shares. Oracle stated that Textura processes approximately “$3.4 billion in payments for over 6,000 projects each month.” Therefore, the Textura acquisition would expand Oracle’s scope of cloud-based offerings such as online contracts and payment services. There are approximately 85,000 contractors in the Textura network.

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Oracle will integrate Textura into Oracle Primavera and build a new unit

Oracle plans to integrate Textura with its product management software Primavera. Oracle Primavera provides a suite of cloud offerings for project, cost, time, and risk management and caters to the construction space. Oracle stated that the Primavera flagship offerings have been “re-architected for the Cloud.”

Investors who wish to gain exposure to Oracle could consider investing in the Technology Select Sector SPDR ETF (XLK). While XLK invests ~3% of its holdings in Oracle, it has an exposure of 31% to application software.

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