NetSuite (NYSE:N) has signed a definitive agreement to acquire on-demand professional services automation software provider OpenAir, which will expand NetSuite's current cloud computing business applications offering.

NetSuite's acquisition of OpenAir will accelerate development of its products specifically designed for services companies, particularly project- and time-based organizations in markets such as professional services, business and IT consulting, legal, accounting, and government contracting. In addition to continuing to develop OpenAir's current offerings, NetSuite and OpenAir will integrate their existing solutions via Web services later this year.

"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," Zach Nelson, CEO of NetSuite, said in a statement.