Here’s a story that we’ve been tracking since last year – Salesforce and SAP competitor NetSuite just filed its S1 registration statement with the SEC, the first formal step in the IPO process.
We previously reported that NetSuite had selected Credit Suisse as their sole banker on the IPO. It turns out they’ve added WR Hambrecht to the deal as well. We had an indication that they would be hoping for a $1 billion+ valuation out the door. There’s no way to confirm that now as pricing information is only determined just prior to the actual IPO and the company is now in what’s called a “quiet period” where they will not be discussing anything about the deal with the press or anyone else. The estimate sounds about right, though. Salesforce is worth about $5 billion based on current revenues of $500 million/year, and SAP has a market cap of $62 billion on nearly $13 billion in revenues. NetSuite’s revenues are now nearly $25 million/quarter. It will be interesting to see how full a valuation the market provides to NetSuite’s integrated ERP and CRM solutions.
The company has raised over $100 million in venture capital, and they will likely be raising another $75 million or so in this transaction.
Oracle’s Larry Ellison owns a majority of the company, and stands to make a significant amount of money in the IPO.
Great company, good people, incredible product. Integrated on-demand suite definitely the right strategy.
Cool – great information – a few thoughts. I didn’t know tech companies went public anymore :p Also, Ellison is behind this? Ugh. Anyway, it’s encouraging to see progress like this – it’s good to have solid progress instead of fly-by-night tech news.
Jason Alba
CEO – JibberJobber.com
:: self-serve career management ::
I think NetSuite should hold on to IPO. They shouldn’t jump into ipo yet.
Because….
http://www.alex...ww.netsuite.com
Alexa data doesn’t seem to have higher ratings and to become the next google stock. I recommend another competition. Three against three VC funding companies will not make another dot com boom. I think they need five or six competitors.
Also, they need Digg, Facebook, youtube ratings.
P.S. Watch out those copycats from oversea like India, China, Germany, and Someparts of europe. These guys are good. They can create 10x better than Netsuite or Saleforce or SAP products. They have VC money also.
wow, the San Francisco Chronicle was ahead of you on this one, A1 coverage even. It’s a funky link, but:
http://sfgate.c...p;type=business
Finally! I was getting worried about losing the bet
Besides, they better run ahead and do it now before SAP’s A1S is out…
This is a great story – an Internet technology company with a large growing revenue base. Should be interesting to see if Google wants to partner with Netsuite as they did with SFDC.
@Forgive Me:
Alexa rankings aren’t relevant to a subscription-revenue company. Digg doesn’t even have $25M/quarter in revenue, forgetting about growing at that level.
The “media metrics” don’t apply here…
We have been chatting about Netsuite in #netsuite on EFnet, come join us and chat about the growth of this great company!
I can’t believe it.
Further validation that Software-as-a-Service / On-Demand whatever you want to call it, is here to stay. Congrats.
Software as service / on demand -
– is a stable market; as companies like this get bigger clients /
– it will make them a main stay
Great news for NetSuite, I’m excited to see the competition heat up a bit. Next stop SuccessFactors…
-Mary from BINC