UPDATE 1-NetSuite signs 9,000-user deal with UK company

Fri Jun 12, 2009 3:02pm EDT
 
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* NetSuite signs 9,000-user deal with UK company

* Also inks contracts with Siemens, Software AG

* Part of European expansion effort

* Shares rise as much as 4.5 pct

BOSTON, June 12 (Reuters) - Business software maker NetSuite Inc (N.N) signed a deal to provide its computer programs to 9,000 workers at a U.K. company, its largest contract to date, as part of a drive to expand in Europe.

NetSuite Chief Executive Zach Nelson disclosed the deal late on Thursday at a dinner in London with analysts, according to a person with Reuters who attended the meal.

He did not provide financial details of the deal for NetSuite's OpenAir software to the company.

Decade-old NetSuite has recently added new products to attract corporate customers with large numbers of employees after starting out as a maker of Web-based software targeted at small businesses. That strategy has helped it boost the average size of its contracts and put it into competition with Germany's SAP AG (SAPG.DE) and U.S.-based Oracle Corp (ORCL.O), the world's two top makers of business management software.

Nelson also said that he recently signed contracts with two German companies -- Siemens AG (SIEGn.DE) and Software AG (SOWG.DE). He did not discuss the size of those deals.

A company spokesperson declined comment, saying that Nelson could not be reached to elaborate on his comments.

Shares in the San Mateo, California-based software maker rose as much as 4.5 percent to $11.70. (Reporting by Jim Finkle; Editing Bernard Orr)

 

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