On demand software firm NetSuite has acquired professional services automation software developer OpenAir, saying that it will help it increase its cloud-based, online offerings.

NetSuite has agreed to pay $26m for the firm and will continue to invest in the development of its product lines, it said in a statement. All OpenAir employees are expected to continue in their current roles, the firm added.

Both firms' solutions will be integrated and offered over the internet, and, Zach Nelson, chief executive at NetSuite explained, will greatly improve the range of services the firm is able to offer.

“OpenAir is the leader in on-demand Professional Services Automation Software, and its customers absolutely love the products. We are excited about leveraging OpenAir’s industry knowledge and customer insight to create the next generation of cloud computing business applications for Services Management,” he explained.

“The Services Industry is one of the fastest growing in the world, and the combination of NetSuite and OpenAir will enable us to accelerate our time to market and deliver a feature-rich, fully-integrated, on-demand suite specifically designed for time-and-project based companies.”