NetSuite Acquires HR Software Player TribeHR
Interesting development in the enterprise cloud software business today. NetSuite, the company that sells a cloud-based enterprise-resource management suite — applications that are used to run a company’s operations — is extending into the human resources area.
NetSuite (that’s CEO Zach Nelson in the picture) said today it would acquire TribeHR, which is a player in the Human Capital Management space, and which, like NetSuite, goes after mid-market companies. So think of it as a Workday or a SuccessFactors for smaller companies.
TribeHR is a four-year-old company based in Waterloo, Canada, and it has 450 customers in 50 countries. Financial terms of the deal aren’t being disclosed, but NetSuite said it will talk about it in more detail when it reports quarterly earnings later this week.
It’s NetSuite’s second acquisition this year. In January it got into the retail point-of-sale business by acquiring Retail Anywhere. Looks like NetSuite is going to remain acquisitive for the time being.
NetSuite shares rose by less than one percent after the deal was announced to close at $109.19 today. The rise probably had more to do with the fact that JMP Securities hiked its price target on NetSuite to $115 from $98 in a research report today. And the reason for that was word from SAP over the weekend that it intends to cut back on development of Business ByDesign, a product that was created to compete with NetSuite.