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Enterprise Software - Tuesday, March 28, 2006

NetSuite To IPO in 3Q06; Owner Larry Ellison Gets Higher Tax Bracket

NetSuite is following its two chief rivals -- Salesforce.com and RightNow Technologies -- by holding an IPO.

The San Mateo hosted software firm plans to file IPO papers with the SEC when the company expects to reach profitability. NetSuite Competes with San Francisco-based SalesForce.com and Bozeman, MT based RightNow Techologies.

"We're hoping to see something in the ballpark of what Salesforce got in terms of valuation," said NetSuite CEO Zach Nelson. In 2004, Salesforce IPO'd at $17 from $11 a share, or 56.4% on its first day of trading. RightNow Technologies' August 2004 IPO came out at $7.

Founded in 1998 by Larry Ellison (who still owns 60% of the company) and NetSuite's CTO/Founder Evan Goldberg, the company has doubled annual revenue for the last three years. In 2005, the company brought in $40M and expects to do $80M in 2006.

Larry Ellison & Rico Suave - Separated At Birth

Read - NetSuite gets sweet on idea of going public (SF Business Journal)