Oracle's cloud business, which stores enterprise software and data on remote servers, lets the company sell to clients who lack the budget for on-site hardware and technology staff.
Like its rivals such as SAP SE , Amazon.com and Microsoft, Oracle has focused on moving its business toward the cloud-computing model as sales of traditional software licenses struggle.
The deal could also help Oracle play catch up with competitors such as Workday and Salesforce.com that specialize in cloud-based offerings.
Oracle Executive Chairman Larry Ellison and his family owned around 40 percent of NetSuite's shares, according to a regulatory filing from NetSuite. Oracle said the deal was led by a committee of independent directors.