Financial software vendor, MYOB, has paid $7 million for a 35 per cent stake in NetReturn to boost its mid-market product range. The investment agreement gives MYOB the option to acquire the remaining equity in NetReturn by 2008.
NetReturn is the exclusive distributor of NetSuite ERP, CRM and eCommerce in Australia and New Zealand. The Web-enabled solution is supplied via an application service provider (ASP) model with no onsite software required.
MYOB CEO, Craig Winkler, said it would fill an important gap in its portfolio.
"We didn't have a full range of mid-market solutions and wanted a product for the 20-seat plus space, especially for companies with multiple branches," he said.
Some changes would be made to the MYOB channel program to cater for increased functionality such as CRM capabilities, Winkler said. Only select partners would resell the NetSuite products.
MYOB would also work with its professional partners and accounting practice clients to build awareness of NetSuite and an understanding of its suitability to their clients, Winkler said.
Canadian-based NetSuite has a user base of several thousand in North America but was struggling for brand recognition locally NetReturn CEO, Mason Little, said.
The product would now be co-branded as MYOB NetSuite and continue to be sold through its existing resellers and direct sales team while a two-month sales review was conducted, he said.