|To: stockman_scott who wrote (5672)||9/14/2011 4:18:02 PM|
|From: Glenn Petersen|
| Facebook puts off IPO until late 2012 |
By April Dembosky in San Francisco
September 14, 2011 7:28 pm
Facebook is preparing to launch its blockbuster initial public offering in the US towards the end of next year, a later public debut by the social networking site than had been widely anticipated, say people familiar with the company.
The IPO, expected to be one of the world’s biggest with recent private share sales valuing Facebook at more than $66.5bn, has been expected by April 2012, with persistent speculation that it could even come this year.
However, people close to the company have told the Financial Times that Mark Zuckerberg, Facebook’s chief executive, wants to wait until next September or later in order to keep employees focused on product developments rather than a pay-out.
Other other internet companies, Groupon and Zynga, have been holding back on their IPO plans amid recent market turbulence. But Facebook’s plans have been set according to internal interests, people close to the company said.
“There’s really no reason to rush a deal,” said Lise Buyer, an consultant who advised Google through its IPO. “The company doesn’t need the money. It is a little easier to focus when you’re private. They’ll go when they’re good and ready, not before.”
“There are so many things you don’t have to do until you take public shareholder money,” Ms Buyer said. “You don’t have to take investor phone calls or show up at investor conferences.”
Peter Thiel, a prominent Facebook investor, said it was generally desirable for technology companies to defer an IPO for as long as possible. He said Google set a good example by not going public for a nearly six years, until it dominated the search wars.
“It was a good competitive strategy,” he said. “And it culturally orientated people toward long-term value and not quarterly numbers.”
Google filed its first financial statements at the latest date allowed by US Securities and Exchange Commission rules, in April of 2004, then had its IPO in August of that year.
According to SEC regulations, once a company accrues more than 500 shareholders, it must file public financial results in the first quarter of the following year.
Facebook surpassed 500 shareholders in January when Goldman Sachs became an investor, meaning it will have to publish numbers by April 2012.
Companies are not obliged to go public after publishing such data but many do so in order to take advantage of market interest and momentum. Some analysts had expected Facebook would go public shortly afterwards after lifting the veil on its financial performance.
Facebook does not disclose financial results but a person familiar with the company said that its revenues were in the range of $2bn a year. However, a report on Reuters last week said the company had made revenues of $1.6bn in the first half of this year, double that of the previous year.
Silicon Valley’s talent war might also be a factor in the timing of the Facebook IPO. This has made hiring and retaining good employees difficult.
While Facebook has been faring relatively well on this front compared to its competitors, some employees are getting keen to cash out in an IPO, according to a person close to the company. Mr Zuckerberg hopes to keep such personnel on staff through next summer in order to complete certain product rollouts, this person said.
Copyright The Financial Times Limited 2011. You may share using our article tools.
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|To: Glenn Petersen who wrote (5674)||9/15/2011 6:26:32 AM|
|GTCR outbids rival for Israeli software firm Fundtech |
By Lynne Marek
September 14, 2011 -- (Crain's) -- Chicago private-equity firm GTCR LLC outbid S1 Corp. for Israeli banking software and services company Fundtech Ltd. with a $400-million offer, and plans to combine it with other operations to create a major player in the industry.
Norcross, Ga.-based S1 will have five days to respond with a superior offer. Still, GTCR said in a news release Wednesday that it expects Fundtech's largest shareholder—Clal Industries & Investments Ltd. of Tel Aviv, with 58% of outstanding shares—to back GTCR's proposal, which would allow the deal to close in the fourth quarter.
Tel Aviv-based Fundtech, which had annual revenue of $142 million last year, facilitates payments processing, financial messaging and cash management for about 1,000 financial institutions in about 70 countries. GTCR plans to combine Fundtech with BServ Inc., another industry player in which it bought a majority stake last month. It will create a Jersey City, N.J.-based company named Fundtech Inc. that would be led by Fundtech Ltd. CEO Reuven Ben Menachem.
“Combining these two complementary companies would create an industry leader in the growing market for innovative banking technologies and electronic corporate payments,” said Collin Roche, a GTCR principal.
David Kvederis, CEO of Las Vegas-based BServ, also known as BankServ, would support the integration and remain a board member, the GTCR release said.
GTCR is stepping in with its bid to buy FundTech as rival bidder S1 grapples with fending off a hostile takeover bid from ACI Worldwide Inc. that was rejected by S1's board this week.
GTCR is making the investment from Fund X, which raised $3.25 billion in committed capital last year.
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|To: Glenn Petersen who wrote (5674)||9/15/2011 4:24:47 PM|
|*** Speaking of big-money cleantech: Fuel cell maker Bloom Energy has not received any DoE grants, but it sure does keep raking in the private financing. Term Sheet has learned that the company recently raised $150 million in new venture capital at a $2.7 billion pre-money valuation.|
Impressive for a company that, like Solyndra, receives eye rolls from virtually every cleantech VC who hasn’t yet invested in it. Existing backers include Advanced Equities, Apex Venture Partners, DAG Ventures, GSV Capital, Kleiner Perkins Caufield & Byers, Mobius Venture Capital, New Enterprise Associates, SunBridge Partners and Goldman Sachs.
No comment from Bloom, which typically doesn’t discuss its financings.
~ from Dan Primack's "Term Sheet"
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