NetSuite announced on Thursday its acquisition of e-commerce solution provider Venda in a move that will significantly boost the San Mateo, Calif.-based software vendor’s rapidly growing business of enabling online retail.
NetSuite, which offers cloud-based business management software, has been aggressively growing its e-commerce capabilities in recent years.
Andy Lloyd, NetSuite’s general manager of e-commerce products, said Venda’s industry leading platform, one that powers some of the world’s largest online retailers, compliments the e-commerce solutions NetSuite already offers. The acquisition of one of the world’s largest providers of digital commerce solutions to retailers and branded manufacturers also creates new channels for NetSuite’s traditional products focusing on business and financial management.
“NetSuite is a pretty robust solution for running an entire business. But we haven’t gone to market and aggressively pursued customers that are just looking for an e-commerce platform alone,” Lloyd told CRN.
“We think the Venda solution is a great one for doing B2C e-commerce, whereas for B2B, NetSuite probably already has the stronger product,” Lloyd said.
Venda will be integrated as a business division within NetSuite and the brand will be marketed as a product unique from SuiteCommerce, NetSuite’s existing e-commerce software package which integrates commercial websites with back office financial and tracking tools.
The acquisition brings a workforce of skilled engineering, product development and professional service teams under NetSuite’s roof at a time the company is expanding its e-commerce capabilities.
“We’ve been finding talented people, bringing them in and helping us move the NetSuite product forward more quickly,” Lloyd told CRN.
Venda has “a strong footprint in branded manufacturing. We want to do more there so bringing in their expertise in that segment is a big piece,” he said.
The acquisition also makes geographic sense.
NetSuite has a strong presence in North America, and has recently made strides in growing its business in the Australian market. The Venda business, headquartered in London, will help the company expand in the UK and European markets.
The deal also exposes NetSuite to a new pool of customers for its traditional cloud-based enterprise management products, such as enterprise resource management, CRM, accounting, inventory and order management software.
Lloyd told CRN that NetSuite’s research shows many retailers want to expand their e-commerce capabilities and integrate them into their brick-and-mortar operations so customers can return products they bought on-line to the store, or check inventories at different store locations.
“Customers want to move from e-commerce being a standalone entity to something being integrated more into their overall business,” Lloyd told CRN.
With that in mind, “we think using the Venda storefront in conjunction with NetSuite’s back office is a great fit,” he said.
While financial details of the deal were not disclosed, more information about the purchase is likely to be revealed on the company’s earnings call next week.