Technology

Thursday 24 July 2014

Irish staff of Silicon Docks US firm in line for windfall after stock market flotation

Adrian Weckler

Published 16/05/2014|14:33

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Google has set up an office in Dublin's 'silicon docks'
Google has set up an office in Dublin's 'silicon docks'

Staff of Dublin-based online customer support firm Zendesk could be in for a windfall after the company completed a successful flotation on the New York Stock Exchange, valuing the firm at €670m.

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The US company, which opened an office in Dublin’s Silicon Docks last November, employs about 25 people here.

Zendesk floated yesterday at a price of $9 (€6.60), which quickly rose to $13 (€9.50), boosting the company’s value by €204m in the space of a few hours. The IPO raised €73m in cash for the company.

While a spokesman declined to comment, the company offers stock options to staff in line with standard hiring practices for international tech firms located in Dublin.

Dublin-based staff in Facebook, Google and Twitter have seen the value of their stock options rise considerably in line with climbing technology valuations.

Zendesk, which is an emerging competitor for customer software giant Salesforce.com, doubled its revenue to €52.6m in 2013 while making a loss of €16m. However, the company has raised at least €63m in funding in the last five years from investors that include Goldman Sachs and Benchmark Capital. The company was founded in Denmark and is now headquartered in San Francisco. It employs 500 people worldwide with Dublin one of its fastest-growing offices. It currently has 10 positions it is seeking to fill at its Silicon Docks office.

The company has over 40,000 corporate customers, including Sony, Vodafone, Adobe and Airbnb, for its online customer support software.

The flotation is a fillip for the software industry, which has taken a dip in stock market performances in recent weeks.

The move also comes as social networking firm Pinterest and car-booking service Uber both raised large new tranches of funding. Pinterest, which allows people to collect and pin pictures and information to an online scrapbook, raised €146m in a funding round that gives the company a €3.65bn valuation, up from €2.8bn seven months ago.

The money, which comes from existing US investors including Andreessen Horowitz, brings the total raised to €558m. Pinterest has yet to generate any significant sales.

Meanwhile, car-booking online service Uber is in talks to raise funds at a valuation of €7.3bn according to US reports.

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