BlueStar Solutions, an enterprise application outsourcing service provider that specializes in SAP software, announced today that it has secured $28 million in fourth-round funding.
The Cupertino, Calif.-based company reports that it will use the cash for new customer acquisition, working capital and strategic initiatives as it looks to increase its market share and extend its service offerings.
The funding round is led by Trident Capital. Additional investors included Morgan Stanley Venture Partners, meVC Draper Fisher Jurvetson Fund I, Affiliated Computer Systems, Osprey Ventures and General Motors Pension Fund.
The Series D Round brings BlueStar Solutions' total financing to $112 million since the company began operations three years ago.
"In this recessionary market, IT outsourcing is faring well as companies seek more cost effective ways to manage their IT assets," said Meredith Whalen, IDC vice president, ASP/BSP and Wireless Services, in a statement released by BlueStar Solutions. "IDC believes the recent round of funding should help BlueStar Solutions in its efforts to increase market share."
"Given the current tight capital market, we are especially pleased that our investors provided such strong financial support," said Thomas F. Kelly, chairman and CEO of BlueStar Solutions. Kelly attributed investor confidence to BlueStar Solutions' installed base, backlog and successful track record.
In addition its primary focus on SAP applications, BlueStar Solutions also offers software from Ariba, Intershop and Siebel as a service.
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