Oracle Expands Project Management Line With Primavera Buy

The acquisition is subject to regulatory approvals, and Oracle said it expects to complete the deal by the end of the year.

Project portfolio management (PPM) applications are used by businesses to make decisions about what projects to invest in, and for planning and managing complex, capital-intensive projects and portfolios of multiple projects. The software, for example, helps businesses allocate resources for projects and manage expenses.

"With 20 percent of the world's GDP spent annually on projects, the addition of Primavera is expected to extend Oracle's leadership position in the enterprise application space," said Oracle President Charles Phillips in a statement.

Oracle already offers a PPM solution built on Oracle Project, an application within its E-Business Suite. Analyst reports say that product is particularly focused on the financial aspects of PPM, including budgeting and forecasting. In the statement announcing the Primavera acquisition, Oracle said it plans to tailor Oracle Enterprise PPM to project-intensive industries such as engineering and construction, aerospace and defense, utilities, oil and gas, manufacturing, and professional services.

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Oracle said it would establish a PPM global business unit around Primavera, which the company's employees and management are expected to join. Primavera CEO Joel Koppelman is expected to head up the organization as senior vice president and general manager.