Oracle is buying construction collaboration software company, Aconex, for a cash amount of $1.2 billion in a move announced by both companies today.
This is the second acquisition of a cloud-based construction software producer for Oracle thus far. The company purchased contract and payment management platform Textura last year for $663 million and merged it with Primavera, its own construction management software to create Oracle Construction and Engineering Global Business Unit.
Suppliers, contractors, building codes and stacks of paperwork all go into making a construction project happen. The tech industry has identified an opportunity in streamlining as much of this as possible, with the past few years seeing startups like Fieldwire, Plangrid and Net30 trying to move the industry forward.
Aconex was founded in 2000, and it holds offices in 30 countries. It’s been used in the management of $1 trillion worth of construction projects. The company claims to have 5.5 million project users who communicate and control building progress, documents, safety and more. Oracle said that Aconex will serve as a complement to its cloud-based construction software, which focuses on project planning, management, and payments in an effort to produce an end-to-end solution for builders.
Aconex is set to become a piece of Oracle’s construction and engineering unit after the acquisition’s close, which is expected to come in the earlier half of 2018.
“We expect that Oracle’s continued investment in Aconex will deliver more functionality and capabilities at a quicker pace, as well as provide better integration and alignment with Oracle’s other product offerings,” said Leigh Jasper, co-founder, and CEO in a letter to Aconex customers.
Oracle makes several acquisitions a year and is one of the biggest enterprise software companies in the world. CrunchBase reports that Oracle has agreed to purchase three more companies: Apiary, which takes care of API designs, Moat, which measures advertisement engagement, and Wercker, a developer tools startup.