Oracle (ORCL) Stock Declines, Acquiring Textura for $663 Million

NEW YORK (TheStreet) -- Oracle (ORCL) shares are slipping 0.73% to $40.55 on Thursday morning after the company announced that it is buying Textura, a construction contracts and payment management cloud services provider, in a deal valued at about $663 million. 

The transaction, in which Oracle will pay $26 per Textura share, is expected to close in 2016. 

"The increasingly global engineering and construction industry requires digital modernization in a way that automates manual processes and embraces the power of cloud computing to easily connect the construction job site, reduce cost overruns, and improve productivity," said Mike Sicilia, SVP and GM, Engineering and Construction Global Business Unit, Oracle.

Also commenting on the announcement, Textura CEO David Habiger added that the company is excited to join Oracle and bring its cloud-based capabilities. 

Shares of Textura are skyrocketing 30.77% to $26.01 on Thursday.

Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B.

The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Recently, 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.

You can view the full analysis from the report here: ORCL

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