NetSuite Acquires OpenAir for $26 Million

| About: NetSuite Inc. (N)

NetSuite (NYSE:N) said Monday that it has acquired OpenAir, which provides on-demand professional services automation software, for $26 million in cash.

The tuck-in acquisition (statement)–all 56 OpenAir employees will continue to work at NetSuite–will give the company a Boston beachhead and an avenue to target the professional services vertical. NetSuite said in a statement that it will integrate OpenAir’s software to target services companies including IT consultants, legal and accounting firms and government contractors.

NetSuite said it will continue to develop OpenAir’s software stand alone and integrate the software into its SaaS ERP suite later this year. The deal is expected to close this month.

NetSuite said it expects revenue for the second quarter of 2008 to remain in the $36 million to $36.7 million range. The loss excluding charges in the second quarter is expected to be 2 cents a share to a penny a share. NetSuite had projected a loss of two cents a share to break even last month.

For 2008, NetSuite projects revenue of $156 million to $159 million with a loss excluding charges to be about 6 cents a share to 4 cents a share. Last month, NetSuite projected revenue of $154 million to $157 million with a loss in the range of 4 cents a share to a penny a share.

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