MYOB buys into web service business
- 28 June, 2005 22:00
MYOB has paid A$7 million for a 35% 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 says it will 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 says.
Some changes will be made to the MYOB channel programme to cater for increased functionality such as CRM capabilities, Winkler says. Only select partners will resell the NetSuite products.
MYOB will 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 says.
Canadian-based NetSuite has a user base of several thousand in North America but is struggling for brand recognition locally, NetReturn CEO Mason Little says. The product will now be co-branded as MYOB NetSuite and will continue to be sold through its existing resellers and direct sales team while a two-month sales review is conducted, he says.