NetSuite is acquiring a developer of cloud-based human capital management applications and will use the technology to assemble an integrated ERP and HCM cloud application suite specifically targeting small and midsize businesses.
Financial details of the deal to acquire Waterloo, Ontario-based TribeHR were not disclosed.
NetSuite said TribeHR's applications complement its current lineup of ERP, CRM and e-commerce cloud applications.
"TribeHR's engaging system of record for employee activity, together with NetSuite's single system of record for core operational business data, gives SMBs a modern, single system to run the core aspects of their business -- all with the scalability, flexibility and agility of the cloud," NetSuite CEO Zach Nelson said in a statement.
Earlier this year NetSuite expanded its SuiteCloud Developer Network to include HCM application developer partners. TribeHR was among the ISVs that joined, creating the TribeHR SuiteApp, and the two companies now have nearly 30 joint customers.
Integrating TribeHR's software with NetSuite's ERP applications, including its NetSuite Premier Payroll Service, would eliminate the need for manual data entry across disparate systems, NetSuite said.
TribeHR's applications provide core human resource management functions, such as managing employee information and tracking employee time off, as well as employee recruiting and talent management capabilities. The system also includes social and mobile computing tools.
NetSuite said it would continue to partner with ISVs in the SuiteCloud Developer Network program that develop workforce management, global payroll and other complementary applications.
Partners are pleased with the expanded product lineup from NetSuite. While acknowledging NetSuite still doesn't have a complete HRMS system, Stephen Blythe, CEO of NetSuite partner Blytheco, said in an email that the TribeHR acquisition "will provide a nice foundation for us to build out a competitive HRMS solution on NetSuite."
In June, NetSuite and Oracle announced a strategic alliance under which the two would integrate Oracle HCM Cloud with NetSuite's ERP cloud applications and target the combination toward midsize businesses. The TribeHR acquisition would seemingly overlap with the Oracle alliance, but NetSuite in a statement said it "plans to continue its product integration and go-to-market strategy with Oracle HCM."
NetSuite said it would further discuss the acquisition on Thursday during its third-quarter earnings call.
PUBLISHED OCT. 23, 2013