Oracle is among the top five cash holders
Earlier in the series, we discussed Oracle’s (ORCL) billion dollar acquisition of Aconex. Before we delve deeper into Oracle’s acquisitions in the last few years, let’s look at its cash position. Apple (AAPL), Microsoft (MSFT), Google (GOOG), Cisco Systems (CSCO), and Oracle (ORCL) are the top five companies in terms of cash. These companies are estimated to hold a total of $679 billion in cash, which is roughly 35% of the total non-financial corporate cash holding as of the end of 2017. Cash holdings in 2017 surged 16% from $585 billion in 2016, according to MarketWatch. Richard Lane, Moody’s senior vice president, said, “We project the technology sector’s share of cash to rise to nearly 50% of total non-financial corporate cash holdings in 2017, up from 47% last year and 31% in 2007.”
Oracle’s cash to fuel share buybacks and its M&A strategy
Oracle’s huge cash reserves have enabled it to take the acquisition route to accelerate its transition to the competitive and crowded cloud space. It spent $663 million and $9 billion last year to acquire Textura and NetSuite, respectively. In 2017, Oracle made three acquisitions:
- Apiary, an API (application program interface) specialist
- Wercker, a developer tools company
- Moat, a digital measurement cloud company
In total, Oracle acquired nine companies in 2016. Since 2012, Oracle has acquired 43 companies.