Oracle has been looking to refashion its business around internet-based products.
Melbourne-based Aconex is a cloud-based solution that manages team collaboration for construction projects and digitally connects owners, builders and other teams, providing management of data, documents and costs across all stages of a construction project lifecycle.
The share price rose 45 per cent immediately after trading resumed on Monday to just below the A$7.80 cash-per-share offer. The strategy was dealt a setback last quarter when cloud-computing sales missed analysts' estimates.
Aconex said in a statement its directors had unanimously recommended the offer, which represents a 47.4 percent premium to Friday's closing price of A$5.29.
The proposal will be voted on by shareholders at a scheme meeting in March 2018.
The Australian company specializes in web-based project management software that allows input from different teams. It's also one of the few Australian technology businesses to have a global footprint.
Technology giant Oracle has offered US$1.19 billion (A$1.56 billion) to buy Australian listed cloud software provider Aconex.
Oracle shares have gained 24% over the past year. The run was sparked by a revenue forecast downgrade it blamed on market uncertainty caused by the Brexit vote and Donald Trump's election as United States president.
"Aconex were looking to grow globally over the next five to ten years or so", Macnab said. "They'd need to have some pretty significant private equity backing, or something, to be able to make a competitive bid". The offer represents a more than four times return on the IPO price of $1.90 a share in December 2014. "With the addition of Aconex, we significantly advance our vision of offering the most comprehensive cloud-based project management solution for this $14 trillion industry".