Software company Oracle Corp has agreed to buy Pillar Data Systems, a privately held storage technology company that is majority owned by Oracle's own chief executive officer, Larry Ellison.

The transaction does not involve any upfront payment, but is structured as a 100 percent earn-out deal, according to Oracle, which said it did not see the earn-out being material to its financial position.

An independent committee of Oracle's board led the evaluation and negotiation of the deal. The company expects to use Pillar Data Systems' technology to help run Oracle software faster and more efficiently, it said.

It sees the deal closing in July, subject to customary closing conditions which it did not elaborate on.

Shares of Oracle were up 0.6 percent at $32.53 in trading before the market opened.

(Reporting by Sinead Carew; editing by Lisa Von Ahn)