Industry Computer software CEO Zach Nelson (2002–) Founder Evan M. Goldberg | Revenue 741.1 million USD (2015) Number of employees 4,603 | |
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Type Subsidiary of Oracle Corporation Key people Zachary (Zach) Nelson (CEO)
Evan Goldberg (Chairman / CTO)
Lawrence (Larry) J. Ellison Stakeholder Services Cloud-based business management platform Operating income Net income (US$124.7) million (2015) Headquarters San Mateo, California, United States Founded 1998, California, United States Subsidiaries Bronto Software, NetSuite (Philippines) Inc Profiles | ||
Netsuite overview
NetSuite Inc. is an American cloud computing company based in San Mateo, California, that sells a group of software services used to manage a business's financials, operations and customer relations. Customers can access these services over the internet, through most internet browsers, ensuring access from anywhere in the world. NetSuite's services are aimed at small to medium-sized businesses, although larger enterprises can also benefit from the consolidated ERP, CRM and e-commerce features. Oracle Corporation offered to purchase Netsuite for approximately $9.3 billion USD in July 2016, with the deal finalizing in November 2016.
Contents
Netsuite overview and demo
History
NetSuite was founded in 1998 by Evan Goldberg as NetLedger, web-hosted accounting software. Oracle licensed the software under the banner of The Oracle Small Business Suite for a short time before that was cancelled. Goldberg is current chairman and chief technology officer.
On January 4, 2007, NetSuite named Moneyball General Manager Billy Beane of Major League Baseball's Oakland A's to its board of directors. Evan Goldberg cited Beane's ability to combine facts with instinct as an important factor in the decision to involve him in the company.
NetSuite became a publicly traded company after its initial public offering (IPO) of 6.2 million shares on the New York Stock Exchange in December 2007. Though NetSuite has shown a 149% increase in revenue in the five-year period from 2009 to 2014 it has incurred annual operating losses since inception.
NetSuite had 2,550 employees as of March 31, 2014, a 31% increase over March 31, 2013, when it had 1,953. One quarter of its employees are based in its Philippine office. NetSuite has additional offices in Denver, Las Vegas, Austin, Chicago, Atlanta, New York, Boston, Toronto, the UK, Spain, the Czech Republic, Japan, Hong Kong, Singapore, Australia and Uruguay.
On July 28, 2016, Oracle announced it had offered to purchase NetSuite for $9.3 billion USD. The deal faces intense scrutiny because Oracle founder, Larry Ellison, owns nearly 40% of NetSuite. This conflict of interest has led the board of both companies to establish independent committees to review the deal from the perspective of independent shareholders. Some major NetSuite shareholders, such as T. Rowe, have notified Oracle they will not be tendering their shares under the current terms of the proposed deal. In early October 2016, Oracle extended the deadline for shareholders of NetSuite to tender their shares to November 4.
Relationship with Oracle Corporation
Even prior to the July 28, 2016 announcement that Oracle Corporation would acquire NetSuite Inc., the two firms shared a close relationship.
In 1998 Evan Goldberg received approximately $125 million in initial financial backing from Larry Ellison, founder and chief executive officer of Oracle Corporation through Ellison's venture capital entity Tako Ventures. Other initial investors were StarVest Partners ADP and UBS PaineWebber. The NetSuite software also relies on database software licensed from Oracle.
Ellison and family members own approximately 47.4% of NetSuite's common stock as of December 31, 2014. The firm's 10-Q filing on March 2, 2015, states that "Mr. Ellison is able to exercise control over approval of significant corporate transactions, including a change of control or liquidation."
Products
NetSuite groups its services into four main suites plus NetSuite OneWorld: