NetSuite Buys E-commerce Provider Venda
NetSuite hopes the purchase will promote growth of its SuiteCommerce software and accelerate its expansion into Europe.
NetSuite, which is known primarily for its cloud-based ERP software, has acquired London-based Venda, a provider of e-commerce solutions, in a move intended to expand the capabilities of NetSuite's SuiteCommerce software and also to support NetSuite's expansion into the European market.
The purchase price was not disclosed.
NetSuite's SuiteCommerce, introduced in 2012, brings together point-of-sale (POS) and e-commerce on a single platform. According to NetSuite, it "enables B2C and B2B merchants, manufacturers and distributors to seamlessly connect every step of a multi-channel, multi-location business -- from e-commerce, POS and order management to merchandising, marketing, inventory, financials and customer support."
Venda’s Convergent Commerce Platform helps retailers and brands deliver a unified customer experience across online, mobile, social and brick-and-mortar channels. Its customers include Tesco F&F Clothing, boohoo.com, Laura Ashley, Little Tikes, TK Maxx and Arsenal Football Club.
"By combining Venda’s deep customer insight and years of experience delivering a real-time, scalable commerce platform with NetSuite’s cloud leadership, we can bring new capabilities to B2B and B2C companies of all sizes and transform how they run their businesses," said NetSuite CEO Zach Nelson in a statement.
Getting More Global
Citing research based on the Gartner report "Market Share: All Software Markets, Worldwide, 2013," NetSuite said it grew its EMEA (Europe/Middle East/Asia) business by 33 percent in 2013. The Venda acquisition will help NetSuite capitalize on what it sees as a key growth opportunity in Europe, a growing interest in online commerce.
According to a Forrester Research report published in May, online retail sales in Europe will grow by a compound annual growth rate (CAGR) of 12 percent over the next five years and will outpace offline sales growth. A booming e-commerce market means companies will become more global, expanding across international borders and opening new subsidiaries.
The increasingly global nature of business is a sweet spot for NetSuite because companies sometimes choose to supplement their existing ERP systems with cloud ERP software as they enter new geographic markets, a trend often called two-tier ERP.
" will be the year that two-tier ERP hits its full stride as large enterprise companies that have invested heavily in cumbersome on-premise ERP rapidly turn to more agile, easily deployed systems that can be rolled out to subsidiaries and new divisions without having to rip out SAP and Oracle at headquarters. Global system integrators such as Capgemini, Accenture and Deloitte are leading the effort." Nelson told Enterprise Apps Today in late 2013.