Mid-level ERP software supplier SSA Global Technologies to raise up $200m in an IPO (initial public offering) of...
SSA Global turned a profit of $51.9m last year on revenue of $297.4m. The company, which picked up the assets of ailing ERP maker Baan last July, is among those Oracle cites as an increasingly strong competitor in its antitrust argument with the US Department of Justice.
SSA Global's IPO is underwritten by Goldman Sachs and Credit Suisse First Boston. The company intended to use proceeds from its IPO to repay debt and for general corporate purposes.
Other tech companies keeping SSA Global company in the IPO pipeline include customer service application service provider RightNow Technologies, analytics service provider WebSideStory, Lindows and Google, which plans to raise as much as $2.7bn.
More than a dozen tech companies have filed for IPOs this year.
One factor in that upswing is the growing maturity of companies that weathered the post-dotcom shakeout, according to David Menlow, president of IPO Financial Network.
"What's evident about the stocks that are coming to market now is that they are companies that are growing, that had their peak year of losses in 2000 or 2001, and have managed to reduce those losses. That's a different profile than what was going around in the boom cycle," Menlow said. "Investors are ready to put their feet back in the water again."
Meanwhile, Salesforce.com one of the first software companies to get in line for an offering, said it stopped plans to go public last month after The New York Times published a story featuring chairman and chief executive officer Marc Benioff.
The company said it would still go public after an unspecified "cooling-off" period, although it acknowledged in an amendment to its regulatory filing that it risks charges it violated securities laws intended to prevent executives from hyping their companies before an IPO.
"If our involvement [in the article] or such activities were held by a court to be in violation of the Securities Act, we could be required to repurchase the shares sold to purchasers in this offering at the original purchase price for a period of one year following the date of the violation," the company said. "We would contest vigorously any claim that a violation of the Securities Act occurred."
Salesforce.com, which filed in December for its IPO, is likely to be the first to complete its offering after it has completed its cooling-off period.
Stacy Cowley writes for IDG News Service