Filed under: Deals, International Business Machines (IBM)
NetSuite Inc. (NYSE: N), which develops web-based enterprise resource planning (ERP) software, is making its first acquisition as a public company. That’s, the firm is shelling out $26 million for OpenAir.
Founded in 1999, the company develops software that helps services companies to manage projects. Of course, the company uses an on-demand model and has some top-notch partners, such as IBM (NYSE: IBM).
Let’s face it, there’s much room for efficiency in the services sector. What’s more, it’s a huge market opportunity.
Interestingly enough, NetSuite will invest in the OpenAir software offering for at least the next ten years. No doubt, this will alleviate some of the potential fears of customers.
Although, the acquisition will weigh on future results. NetSuite has increased its 2008 loss estimate from $0.04 per share to $0.04-0.06 per share.
So far in today’s trading, NetSuite’s shares are down 3% to $22.05.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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