Cloud-based financial software company NetSuite has purchased Venda in a move to expand its e-commerce portfolio.
NetSuite’s acquisition of Venda boosts its previous investments in cloud migration and consumer and commercial commerce tools, the firm said. NetSuite has not yet revealed the financial details behind the acquisition, but said it will disclose these towards the end of July.
Venda will remain a standalone company but will work closely with NetSuite to offer new and existing customers the option to use Venture’s e-commerce services backed up with NetSuite’s cloud-powered enterprise resource planning (ERP) systems.
With Venda counting major brands such as Tesco’s F&F clothing line, Laura Ashley and TK Maxx as customers, the acquisition not only strengthens NetSuite’s cloud services offering but also demonstrates its commitment to investing and building its presence in Europe.
NetSuite will continue to invest in Venda particularly in the run up to the holiday season where online retail sales are expected to peak.
In an interview with V3, Zach Nelson, NetSuite CEO, explained that both companies share the same vision of cloud-powered commerce delivered through a single set of systems. “E-commerce is what the future state of what cloud ERP looks like, and we are investing in technologies that link to it,” he said.
Nelson added that he hopes to encourage companies looking to use Venda’s e-commerce platform to also opt for NetSuite’s cloud services to handle back-end processes, particularly as the two platforms are guaranteed to be compatible.
However, Venda will also work with other vendors’ ERP systems if that is what their customers are using.
Nelson told V3 that this is certainly work in progress, explaining that “each customer situation is always specific to the customer”. He hinted that some businesses would have to abandon familiar legacy systems if they wish to harness cloud-based platforms.
Eric Abensur, CEO of Venda, was also positive about the acquisition: “Venda has incredible technology, employees and customers. Combining those attributes with NetSuite’s scale and leadership in cloud ERP and CRM technology, we are well positioned to meet the needs of our customers and execute on our vision of global commerce.”
While cloud adoption is growing among businesses in a variety of sectors, some concerns still exist over data security and regulation that may give CIOs a reason to pause before investing in a new cloud-powered IT infrastructure.