NetSuite Files for IPO, Expects $75M

SAN MATEO , Calif. – NetSuite, a leader in on-demand business management software and the maker of the self-branded NetSuite system , announced on July 2 that it has filed an S-1 registration statement with the SEC relating to a proposed initial public offering of its common stock. The action comes after months of speculation that an IPO was coming for the company, which is 61 percent owned by Larry Ellison, the CEO of Oracle Corp. As part of the filing, NetSuite said it plans to raise up to $75 million with the IPO, which it intends to use as working capital and to repay existing debt. The company disclosed that it also might use a portion of the proceeds to acquire other businesses, however, no acquisitions are currently in progress.

NetSuite’s product base is centered on hosted (software-as-a-service) ERP systems for the small and mid-sized enterprise market that integrate accounting, sales, CRM and business process applications. Initially known as NetLedger, the company initially started as a subsidiary of Oracle, but then was organized separately, with majority interest retained by Oracle’s head. The company’s initial product lines included the Oracle Small Business Suite, which is now the flagship product of the technology vendor, which was rebranded as NetSuite in 2004.

As one of the initial developers of hosted, software-as-a-service ERP and CRM applications for business markets, NetSuite is in competition with Salesforce.com, SAP, Microsoft’s new Titan on-demand CRM suite, and increasingly with Oracle. The NetSuite system is available in multiple languages, including English, Japanese, Chinese, Spanish, French and German, which has proven useful to companies with distribution or manufacturing channels overseas. The latest version of the company’s flagship product NetSuite 11.0 received a 5-Star Review rating in The CPA Technology Advisor, the leading technology magazine for public accounting professionals.