Oracle Corp (Oracle (ORCL)) shares are climbing in extended trading Thursday after the company landed a massive 10-year defense contract. The U.S. Defense Department has awarded Oracle a $7 billion enterprise software agreement, the first direct award contract covering the department's on-premises Oracle usage. The deal, negotiated by the Department of the Navy, consolidates licensing and gives the department better visibility into usage and spending, which it says 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. Oracle shares were up 2.27% in after-hours trading Thursday, trading at $122.74 at the time of publication.
