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NetSuite says its acquisition of TribeHR will create a consolidated, competitive cloud-based HRM/ERP offering

NetSuite says its acquisition of TribeHR will help it create a consolidated, competitive cloud-based HRM/ERP offering

Netsuite, a company specialising in cloud-based enterprise resource management announced today that it will acquire TribeHR, one of its main competitors also catering to small and medium-sized businesses. The company said it plans to create one consolidated ERP /HCM offering for mid-market businesses.

The proposed acquisition, which is subject to the usual closing conditions, will see Netsuite consolidate TribeHR’s cloud-based human capital management and its very own enterprise resource planning and financials suite into one software as a service suite aimed specifically at SMBs, which the company said is a first.

“TribeHR was founded on the idea that the best companies are built by inspired, connected and engaged employees,” said Joseph Fung, co-founder and chief executive officer of TribeHR. “The initial reception of TribeHR in the NetSuite installed base proved the power of coupling employee engagement with operational excellence, and we are excited about going where no company has gone before in combining core business process applications with employee interaction applications.”

TribeHR, which was founded four years ago in Waterloo, Canada and has 450 customers globally, is almost like a Workday – but for smaller, mid-market businesses. NetSuite said it will talk about the acquisition in more depth during its third quarter earnings call later this week and it’s likely that the company plans to tout its renewed push into the human resources space, a market ripe for cloud-based services due to the relatively low complexity of the systems generally implemented there.

“TribeHR is a rare HR software solution that combines the rich traditional HCM capabilities needed to manage growing organizations with an engaging social interface that encourages employee involvement and collaboration,” said Zach Nelson, chief executive officer of NetSuite. “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.”

The news of the acquisition arrives as Symphony releases its combined HR / payroll offering, which also taps into SAP’s SuccessFactors.

This is NetSuite’s second acquisition of the year. In January the company acquired Retail Anywhere, a mobile POS hardware and software specialist in order to drive further into retail commerce (and its intersection with e-commerce). Morevoer this puts Oracle, which has a reasonable stake in NetSuite (Oracle CEO Larry Ellison is a big shareholder), in the unique position of being able to enjoy the fruits of NetSuite’s growth (which has outpaced Oracle’s in recent years) while being able to keep its clout with larger enterprises (many of which are simply transitioning from Oracle on-premise to Oracle in the cloud).