NEW YORK (TheStreet) -- Shares of Oracle (ORCL) - Get Report are gaining 1.88% to $41.70 in pre-market trading on Thursday after the Redwood City, CA-based company agreed to purchase NetSuite (N) for roughly $9.3 billion.
Oracle has bid $109 per share for the cloud-based software services provider, representing a 19% premium to NetSuite's Wednesday closing price.
"Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever," Oracle CEO Mark Hurd said in a statement. "We intend to invest heavily in both products - engineering and distribution."
The transaction is expected to close in 2016.
Oracle said the deal should be "immediately accretive" to adjusted earnings this year after the deal closes.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B+.
Oracle's strengths such as its reasonable valuation levels, expanding profit margins, solid stock price performance, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: ORCL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.