RSM UK has announced a takeover of First Hosted and created Europe’s largest NetSuite partner.
RSM COO David Gwilliam said he was delighted to announce the FHL acquisition and welcome their market-leading NetSuite team into the more comprehensive RSM family.
“The prospects for this expanded offering are exciting. Being the UK and Europe’s largest and leading NetSuite provider significantly strengthens our capability to provide clients with a broader spectrum of business systems services and solutions.”
FHL will trade under its name following the acquisition.
Andrew Peddie, FHL managing director, said: “This move to integrate with RSM marks a game-changer in our market. For us, as a company, it presents the next natural step in our growth cycle.”
He said that NetSuite technology could not efficiently deploy without the right people in place to provide the necessary skills.
“RSM is a great fit, both culturally and in terms of what each side can offer”, he said.
NetSuite has said that it wants to work with more ISVs and is continuing to recruit more UK partners.
The Oracle-owned outfit is a more attractive prospect for channel players looking to sell more business intelligence tools and services.
NetSuite is recruiting resellers across EMEA as well as bringing on board a larger number of ISVs.
It will be expanding its SuiteCloud Developer Network (SDN) programme to extend the programme across more countries in EMEA before becoming a global initiative.
The vendor makes SuiteApps which are add-ons for developers to target verticals or compliance requirements in individual countries.
ISVs themselves can also contribute their own apps to help support expansion into specific market areas.
Alongside that initiative the firm has also reported that it is continuing to add new partners in the UK to help service customer demand for ERP solutions.
Some Netsuite shareholders might be relieved that the outfit could be bought by Oracle – the outfit’s last financial results were not that great.
The Cloud-based ERP outfit announced its last quarter results before it joins Ellison’s team and while it has continued to grow it is also showing increased operating overheads and losses. In other-words if it had not been bought out it could be in for some serious restructuring if it is going to continue.
NetSuite reported a third quarter loss of $34.1 million compared to $37.7 million a year earlier, on revenue of $243.9, up 26 percent. Costs increased to $50.2 million compared to $44.3 million.
The $9.3 million buyout needs to be approved by shareholders on 4 November. Surprisingly, shareholders don’t like it and the meeting could be contentious. The feeling is that Ellison and the Netsuite board have undervalued the company. We would have thought that they only have to look at the numbers to see that it is probably a good idea.
The Netsuite board seems to think the shareholders will go for it. They have said that this is the last time that the company would be making the figures public. After all it is going to be part of Ellison’s empire if the vote goes ahead.
Oracle has written a cheque for the world’s first first cloud company – the transaction for NetsSuite is valued at $9.3 billion.
Oracle’s CEO, soft-porn star fan and expenses wizard Mark Hurd said that Oracle and NetSuite cloud applications were complementary, and will “coexist in the marketplace forever.
“We intend to invest heavily in both products – engineering and distribution. We expect this acquisition to be immediately accretive to Oracle’s earnings on a non-GAAP basis in the first full fiscal year after closing.”
Oracle’s other CEO Safra “Kool4″ Catz said that NetSuite has been working for 18 years to develop a single system for running a business in the cloud.”
Evan Goldberg, Founder, Chief Technology Officer and Chairman, NetSuite, said: “This combination is a winner for NetSuite’s customers, employees and partners. NetSuite will benefit from Oracle’s global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries.”
The transaction is expected to close in 2016. The closing of the transaction is subject to receiving certain regulatory approvals and satisfying other closing conditions including NetSuite stockholders tendering a majority of NetSuite’s outstanding shares in the tender offer.