NetSuite to raise cash, may go shopping

Summary:NetSuite will raise $270 million and could fund "possible acquisitions of, or investments in, complementary businesses, products, services, technologies and capital expenditures."

Taking advantage of its recent stock price run, NetSuite said that it would float convertible bonds to raise $270 million to potentially fund future acquisitions.

The move comes amid solid results from NetSuite and shares that are pushing $90.

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NetSuite shares over three years.

 

In a statement, NetSuite said that the bonds will mature June 1, 2018. If certain conditions are met, the bonds can convert to common stock.

NetSuite said it plans to use the proceeds for "working capital and other general corporate purposes, including to fund possible acquisitions of, or investments in, complementary businesses, products, services, technologies and capital expenditures."

Cash-rich technology companies are often hitting the debt markets because they can raise money at cheap rates and do things like provide dividends. For instance, Apple recently tapped the debt markets.

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Topics: Cloud, Enterprise Software

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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