NEW YORK (TheStreet) -- Cloud provider and software giant Netsuite (N) has agreed to be acquired by Oracle (ORCL) - Get Report for $9.3 billion, the second largest deal ever done by Oracle since its acquisition of PeopleSoft, CNBC's Jon Fortt reported on "Closing Bell" Thursday.
Oracle chairman and co-founder Larry Ellison also co-founded Netsuite and owns 40% of the company's shares, making this anything but a hostile takeover, Fortt reported.
Oracle expects the deal to close this year and boost earnings immediately.
Those against the acquisition say its pricey and that Oracle already has similar cloud software that Netsuite makes, Fortt added.
Oracle justifies the acquisition by saying the company has reached a point where its cloud data infrastructure can capitalize off of a company like Netsuite, he explained.
Oracle's goal is to surge ahead in growth while other cloud software companies try to catch up, Fortt noted.
The company has said Ellison's shares of Netsuite will not count towards the shares that need to be voted in order for the deal to go through, he said.
Shares of Oracle closed up by 0.62% to $41.19 today.
Separately, TheStreet Ratings team set this stock as a "buy" with a ratings score of B+. The company's strengths can be seen in multiple areas, 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. TheStreet Ratings team feels its strengths outweigh the fact that the company shows weak operating cash flow.
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 articles's author.
You can view the full analysis from the report here: ORCL