On-demand ERP (enterprise resource planning) vendor NetSuite is purchasing OpenAir, maker of Web-based PPO (project portfolio management) and PSA (professional services automation) software.
The deal will help NetSuite sell software to companies whose businesses are organised around projects, such as IT consulting and government contracting firms, NetSuite said.
NetSuite will pay US$26 million for OpenAir, net of cash on the latter's balance sheet, according to a statement. The deal is expected to close ithis month.
The company's 56 employees transfer to NetSuite,
NetSuite plans to continue selling OpenAir as a stand alone product but will integrate its offering into the core ERP system later this year, and will continue developing OpenAir's technology "for a minimum of 10 years," according to a statement.
OpenAir has 300 customers and more than 40,000 active users of its software, according to the company,and they will not be required to migrate to NetSuite products.