Oracle is presently trying to add rocket fuel in a high-stake race to take over cloud services — and it is doing it with a familiar partner. The software mogul will pay a whopping $9.3 billion in cash to obtain NetSuite, another cloud computing company which was co-founded by an Oracle executive chairman called Larry Ellison.

Oracle will give $109 in cash for each NetSuite share in a transaction which is expected to be completed this year. NetSuite’s board unanimously approved this deal, the company stated. Shares of NetSuite pushed 18.4% to $108.41 after it rose by 9% on speculation of the deal. Oracle shares, on the other hand, rose 0.6% to $41.19.

The Redwood Shores has been trying to make a speedy, pricey pivot to cloud services as big rivals including Amazon and Microsoft— along with the cloud-first companies like Salesforce.com — make hostile plays for business clients with cloud-based enterprise offerings.

Though cloud services revenue was rising rapidly at Oracle, it has not been able to properly offset the drop in software license revenue, as companies move their activities to the Internet- or cloud-based apps.

In NetSuite, Oracle gains the company that was the first to provide a complete suite of enterprise resource strategizing applications, said Ray Wang, from Constellation Research. It is also procuring a firm that has close ties to Oracle. With NetSuite’s IPO in late 2007, the company is valued at about $2.1 billion. Even though it’s not lucrative, its market cap increased to approximately $7.4 billion this year.

The present NetSuite CEO Zach Nelson, has said he assumes NetSuite wil hit $1 billion in their revenue for the first period.

Biggest deal since PeopleSoft

If completed, the purchase of NetSuite will be its largest transaction since obtaining the corporate software company PeopleSoft for $10.3 billion.

Ellison’s owns both Oracle and NetSuite, and it may raise some questions about whether the shareholders in the companies are enjoying the best price.

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