NetSuite added to its online CRM and accounting applications today by acquiring OpenAir for $26 million, including the assumption of $5 million of restricted stock that will continue to vest through 2010. Boston-based OpenAir sells Web-based software aimed at professional services firms, including timesheets, expense reports and project management.
The acquisition isn’t a huge win for investors Fidelity Capital, 3i, i-Hatch Ventures, and Rex Capital, who have already sunk $16 million into the company. The deal was all cash, net of the cash on OpenAir’s books and the $5 million in restricted stock. NetSuite will keep all 56 employees.
If NetSuite can do a better job pushing OpenAir’s Web-based software to its larger base of existing customers and reach new professional service customers as well, the acquisition will look like a deal.
I thought the guys from OpenAir were tight with SFDC. I wonder how this will impact their status in the AppExchange world. Services automation doesn’t appear to be very sexy, but neither is ERP. Looks like a nice little deal that could pay off down the road.
Hmmm, Boston, eh? Does (NetSuite board member) Billy Beane know about this? GO A’S!!!
Services organizations are naturally distributed across the globe, so SaaS or cloud computing is a good model for them. Seems like a good synergy between the two companies - NetSuite gets depth in a vertical they were already targetting, and OpenAir gets global reach they didn’t have before.
Interesting mix of two companies because they both really drive the SaaS model. I would suspect that many OpenAir customers have a need for robust ERP functionality. Does anyone know how much overlap already exists between the two products?
OpenAir started as TimeBills back in mid 1999. It’s been a long road to this moment…
Well, $10 million in the green isn’t too bad.
That’s better than the folks who decide to hold out, only to see things start to crumble before their eyes (Facebook comes to mind) before a sale can happen.
I have heard this news earlier at Richromances.com where many members are busy with talking about this story. Many related blogs can be found at that site.
lawrence okey right….
wonder how it looks now, used it about a year ago and it was quite.. inconvenient.
we use openair where i work….. TERRIBLE software…. hire a designer people!