It’s not the sexiest acquisition news you’ve ever heard, but another Canadian startup has hit paydirt.
Waterloo-based startup TribeHR, led by CEO Joseph Fung, has entered into an agreement to be acquired by San Mateo, California-based NetSuite. TribeHR is a a leading provider of “Human Capital Management” (HCM) solutions and NetSuite said the agreement will create the first integrated cloud ERP and HCM software suite for small and mid-sized businesses (SMBs).
“ERP” is enterprise resource planning, or a software system that gives a company an integrated real-time view of its core business processes such as production, order processing, and inventory management. Human capital management, meanwhile, is simpy human resources solutions.
NetSuite said the proposed acquisition would create a single cloud solution for modern startups with the ERP power to run their core business operations as well as a rich, social HR software solution to manage employees.
“TribeHR is a rare HR software solution that combines the rich traditional HCM capabilities needed to manage growing organizations with an engaging social interface that encourages employee involvement and collaboration,” said NetSuite CEO Zach Nelson. ”TribeHR’s engaging system of record for employee activity, together with NetSuite’s single system of record for core operational business data gives SMBs a modern, single system to run the core aspects of their business—all with the scalability, flexibility and agility of the cloud.”
The proposed acquisition is subject to customary closing conditions, but it seems all but in the books for the Waterloo startup led by Fung. The terms were not disclosed, but NetSuite will discuss this announcement further at its scheduled third quarter 2013 earnings call on Thursday at 5:00 p.m.
The startup was founded in 2009 also has an office in Boston. It received $1 million in venture funding in July 2011 and an additional $2.5 million in August 2012, from Matrix Partners and Relay Ventures. Moreover, its software tools are used by over 450 businesses worldwide in more than 50 countries, allowing companies to “focus more on what they do best and less on things that get in the way.”
TribeHR is also a “SuiteCloud Developer Network (SDN) partner”. In 2013, TribeHR joined the NetSuite SuiteCloud Developer Network (SDN), created the popular TribeHR SuiteApp, and now has nearly 30 joint customers with NetSuite.
“TribeHR was founded on the idea that the best companies are built by inspired, connected and engaged employees,” said Fung. “The initial reception of TribeHR in the NetSuite installed base proved the power of coupling employee engagement with operational excellence, and we are excited about going where no company has gone before in combining core business process applications with employee interaction applications.”
Here are some of the HCM functionality that TribeHR provides, which help businesses recruit, manage and reward employees:
- Core HRIS (Human Resource Information System) to manage essential employee information individually and in aggregate, featuring employee administration, employee profile, employee history, compensation tracking, reporting for compliance, organizational charts, company directory, employee self-service, manager self-service, employee and recourse document storage, and employee time-off tracking.
- Recruiting capabilities including a social applicant tracking system (ATS) with integrations to LinkedIn and Facebook, a must for modern human resources organizations with plans for rapid growth.
- Talent Management functionality featuring 360-degree feedback tools, goal management, performance appraisals, skills tracking, and values and culture tracking.
- Social HR overlays all the functionality of the system, providing commenting, collaboration, and peer and public recognition tools that span the entire company.
- Mobile support for iOS devices so employees can collaborate and connect no matter where they are.
Photo by the Waterloo Region Record