Business World

Thursday 22 March 2018

Globoforce to raise €54m in IPO

Barry Maloney
Barry Maloney

Roisin Burke

Irish software company Globoforce plans to raise €54m by offering 4.4 million shares on the Nasdaq when it floats next week, the first substantial Irish listing on that US exchange in over a decade.

A market value in the region of €340m is suggested by the share-price range of €11.50 to €13 and the proposed ticker symbol is THNX.

The company, which helps big corporates provide rewards for their employees, had planned to list on St Patrick's Day but pushed out the date. It filed details of its listing terms with the US Securities Exchange Commission on Wednesday. The Sunday Independent flagged the company's Nasdaq float plan some months ago.

Investors in Globoforce include Barry Maloney's Balderton Capital, which has a 41.5 per cent stake; Riverdeep founders Patricia Burke and Ed Wallace; former Irish Life & Permanent treasury head David Gantly; and US venture fund Atlas, which has a 31.4 per cent holding.

Chief executive and co-founder Eric Mosely's 11 per cent stake in the company could be worth €37m post float. JP Morgan, Credit Suisse, UBS Investment Bank and Stifel are the joint book-runners.

Globoforce said it estimates it will receive net proceeds from the offering of €28m based on an assumed initial public offering price of €12 per share (the mid point of the price range) after deduction underwriting discounts, commissions and offering expenses.

"We may use a portion of the net proceeds for the acquisition of businesses, products and technologies that we believe are complementary to our own," the company said in its filings.

Globoforce says it has over 100 client companies and more than 1.9 million users located across 140 companies in 29 languages. Customers include big blue-chip companies such as Abbott, CitiCorp, JetBlue Airways, InterContinental Hotels and Symantec. Utilities giant General Electric represents over 30 per cent of its revenues.

The company has revenues of €135m in an employee reward recognition market that it predicts will grow to be worth €23bn by 2016.

The firm was founded in 1997 by former insurance executive Eddie Reynolds and software ace Moseley.

This is the first Nasdaq IPO with substantial Irish involvement since Barry O'Callaghan's Riverdeep in 1999. In 2012, Dublin-based Fleetmatics listed on the New York Stock Exchange.

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