Netsuite is tapping investors for cash and plans to offer $270m worth of unsecured convertible senior notes due in 2018 to institutional buyers. The plan is to use the proceeds for working capital and general corporate expenses including acquisitions. Fellow SaaS pure-play Salesforce.com undertook a similar but more ambitious $1 billion plan in March this year (see Salesforce borrows to stoke the boilers). Rising losses are as predictable as rising revenue for SaaS pure-plays and as long as revenue rises faster than losses the model works. Pushing for additional cash provides more scope for operational movement and to grow market share but does little in terms of bringing profitability into sight.
↧
Now Netsuite is raising cash
↧