NetSuite has signed a definitive agreement to acquire QuickArrow, an Austin-based cloud computing software provider for professional services businesses. As per the agreement, QuickArrow will be integrated into NetSuite’s OpenAir business.
This acquisition is expected to advance NetSuite’s creation of cloud computing application suite for services-based companies. In October 2008, NetSuite announced its Services Resource Planning (SRP), the cloud-based product for the overall management of a professional services business – from marketing to project management, service delivery, billing, revenue management and driving repeat business from existing clients.
The addition of QuickArrow and its services-automation industry experience is expected to enhance the development of NetSuite SRP’s capabilities to address the needs of services-based businesses.
Morris Panner, CEO of OpenAir, said: Underlying both the QuickArrow and the OpenAir acquisition is NetSuite’s strategic commitment to lead the business application revolution taking place in the services sector. Together, we have the resources and the platform to realise a vision to serve the global services economy of tomorrow.
According to NetSuite, it will maintain QuickArrow offices in Austin, Texas, and will continue to support the current QuickArrow software product. QuickArrow customers will not be required to migrate to NetSuite or OpenAir products.
NetSuite will purchase QuickArrow for $20 million in cash. NetSuite expects the transaction on a standalone basis to be accretive in 2010 to non-GAAP net income and cash flow.
The merger is subject to customary closing conditions. Closing is anticipated to take place in July 2009.
