Oracle Corp (NYSE:ORCL) shares are rising in extended trading Thursday after the company was awarded a 10-year defense contract.
- Oracle stock is gaining positive traction. What’s pushing ORCL stock higher?
Oracle Gets $7 Billion Software Contract
The U.S. Defense Department has awarded Oracle a 10-year, $7 billion enterprise software agreement. The deal, negotiated by the Department of the Navy, is the first direct award contract with Oracle covering the department’s on-premises Oracle usage.
The deal consolidates licensing and gives the department better visibility into enterprise usage and spending, which it said will help optimize technology budgets.
“By fundamentally improving how we procure on-premises Oracle capabilities, we are driving at least $441 million in taxpayer savings while rapidly and effectively serving our warfighters,” said Kirsten Davies, chief information officer for the Defense Department.
“This nearly $7 billion agreement with Oracle strengthens our digital ecosystem, supporting our warfighters with secure, scalable technology to dominate current and future missions.”
The agreement is structured as a five-year base period with a five-year option period.
ORCL Shares Rise After Hours
ORCL Price Action: Oracle shares were up 2.27% in after-hours Thursday, trading at $122.74 at the time of publication, according to Benzinga Pro.
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