NetSuite will acquire email service provider Bronto Software

The deal will combine a major B2B and B2C e-commerce platform and business software provider with an email marketing company that works with more than 100 Top 1000 online merchants. NetSuite will pay $200 million for Bronto.

In a deal that will combine the resources of a major supplier of e-commerce software with those of an online marketing firm, NetSuite Inc. signed an agreement to purchase Bronto Software for $200 million.

NetSuite provides order management software to 15 merchants ranked in the new Internet Retailer 2015 Top 500 Guide, including Bed Bath & Beyond Inc. (ranked No. 80), Groupon Goods (No. 30) and PureFormulas.com (No. 401). It also supplies customer relationship management (CRM) and fulfillment services to many of those retailers, and 27 e-retailers in the 2014 Second 500 Guide use NetSuite’s order management system and other services.

In total, the company says more than 3,000 business-to-business and business-to-consumer companies use its SuiteCommerce e-commerce platform. More than half of those customers are B2B, and last year it launched a new set of B2B software tools for its SuiteCommerce e-commerce platform.

In combining the marketing capabilities of Bronto with the e-commerce platform, order management and inventory visibility of NetSuite, the companies believe they have a unique opportunity to enable retailers to market to customers more effectively, Bronto CEO Joe Colopy and NetSuite general manager of commerce products Andy Lloyd said.

“Going forward, think about a retailer that’s sending out email marketing to their customer list,” Lloyd says. “They have specific items they want to market to that customer. If they send out the exact same email to all clients, they may be promoting an item that’s not in stock in the store a mile down the road from some customers. Now you’ll be able to do things like send email to consumers that takes into account not only their purchase history, but also things like what’s in stock in a local store.”

The companies will operate separately, and both are planning major hires. NetSuite plans to add 1,000 employees this year, Lloyd says, and Bronto is on track for an additional 100 hires, mostly at its headquarters in Raleigh-Durham, N.C.

Thirty-seven merchants in the 2015 Top 500 Guide, including JustFab Inc. (No. 98), Nasty Gal Inc. (No. 112) and CafePress.com (No. 140), and 67 merchants in the 2014 Second 500 Guide name Bronto as their email marketing provider. (The 2015 edition of the Second 500 Guide will be released in mid-May.)

NetSuite and Bronto say they will be able to supply retailers, manufacturers, wholesalers and distributors with NetSuite’s e-commerce and accounting software integrated with Bronto’s marketing tools.

“This combination, for the first time ever, ties a rich marketing automation system with a cloud-based omnichannel commerce platform.  The capabilities this solution will deliver are transformational,” says NetSuite CEO Zach Nelson. “Just as customers demand seamless cross-channel shopping experiences, they increasingly expect companies to communicate consistently through all of their digital experiences – on site, at stores, in email or through social or mobile.  By combining the two companies’ offerings and technology, we can help merchants deliver relevant and consistent digital commerce experiences throughout the customer journey.”

The deal is expected to close in the second quarter of 2015, subject to certain closing conditions and regulatory clearance.

Visma, a KKR portfolio company, Invests in Acumatica

Investment and distribution agreement to accelerate adoption of Acumatica’s Cloud accounting, ERP, and CRM software worldwide.

Acumatica, a provider of Cloud ERP software, announced the close of a round of investment led by Visma, a portfolio company of an affiliate of Kohlberg Kravis Roberts & Co. In addition to the investment, Visma will help to accelerate Acumatica sales and partnership goals, through its own activities as a leading Nordic-based technology company that delivers accounting, tax, and payroll applications to hundreds of thousands of SMEs in the Nordic region and through its network. The investment will be used to help Acumatica expand its sales and marketing efforts, continue development of its leading technology platform, and secure its position as a leader in providing Cloud ERP software.

Unlike traditional software solutions, Acumatica allows clients to work from anywhere without complex client software so businesses can involve everybody while saving money on deployment and ongoing operational costs. Unlike SaaS-only providers, Acumatica allows customers to control the location of their data, the timing of upgrades, and ongoing software expenses.

“Acumatica is the only established Cloud ERP vendor with technology that gives customers the choice to deploy their software on-premise, hosted in a cloud datacenter, or purchased as a turnkey SaaS solution,” said Øystein Moan, CEO at Visma. “Our investment in Acumatica acknowledges their unique positioning within the market and our belief that Cloud technology will play a critical role in the future of ERP software. We will adapt Acumatica for the Nordic markets and distribute Acumatica to our tens of thousands of midsized customers in Norway, Sweden, Finland, Denmark, and The Netherlands.”

Acumatica’s software delivers a complete set of solutions to cover all mid-sized business needs. This includes advanced financial features that are integrated with inventory, sales orders, purchase orders, customer management, and many other modules. A flourishing community of third party developers utilizes Acumatica’s development platform to construct fully integrated modules for manufacturing, ecommerce, payroll, EDI, point of sales, and other vertical market solutions. Acumatica has hundreds of customers in several industries including key accounts in wholesale distribution, financial services, hospitality, manufacturing, not for profit, and professional services.

“This new round of financing is important because Visma will provide the resources to help establish Acumatica as the global leader in Cloud ERP software and introduce Acumatica to several new high-quality business partners through its network," said Ezequiel Steiner, CEO of Acumatica. "A partner like Visma is a testament to our current business plan, our product roadmap, and the efforts of our channel partners as well as a vote of confidence in our ERP technology. This partnership enhances the credibility of Acumatica in the eyes of our customers."

About Visma 
Visma is the leading Nordic-based technology company that delivers mission-critical software and services, such as accounting, tax, and payroll applications, to over 300,000 SME customers in the Nordic region and the Netherlands.  The group comprises five business areas which are Visma Software, Visma BPO, Visma Commerce Solutions, Visma Retail and Visma Projects & Consulting. For additional information, please visit Visma’s website at www.visma.com.

About Acumatica
Acumatica develops web-based ERP software that delivers the benefits of Cloud and SaaS without sacrificing customization, control, security, or speed.  Acumatica can be deployed on premise, hosted at a datacenter, or run on a Cloud computing platform.  Learn more about Acumatica’s Cloud ERP solution at www.acumatica.com.