Netsuite was founded by an ex-Oracle employee, Evan Goldberg, who claimed that the company had worked for 18 years to create a system for running a business in the cloud.

Mark Hurd, CEO of Oracle, said that products from his and Netsuite’s business complemented each other and Oracle will invest in both sets of cloud products.

The deal is expected to close this year, subject to regulatory approvals and Netsuite shareholders agreeing to the sale.

Netsuite claims its set of cloud based software runs the businesses of over 30,000 companies worldwide.

It offers cloud applications such as financial management, retail management, financial software and other products and will continue to operate independently until the deal closes.

Oracle’s founder, Larry Ellison, owns a bunch of shares in Netsuite.