The week kicked off with three new deals added to the US IPO
calendar on Monday morning, each of which are scheduled to price
the week of March 18. The group is comprised of nursing
facility REIT Aviv (
), conference call specialist West Corporation (
) and on-demand digital ad management firm Marin Software (
). In addition to the deals that set terms this week, two
biotechs, Tetraphase (
) and Enanta (
), along with revenue management solutions provider Model N
(MODN) and SPAC HF2 Financial Management (HTWO), were already on
the calendar, bringing the total to seven deals that could price
next week and raise a total of nearly $1.3 billion. There
have only been two pricings thus far in March, following a 2012
in which March had 20 deals price, more than any other month.
With Marin Software setting terms on Monday morning, the calendar
now has its first two software IPOs scheduled for 2013. Marin
originally filed for its IPO in February 2013, two months after
filing confidentially with the SEC. Marin offers an integrated
platform for managing search, display and social marketing.
Its primary backers include Benchmark Capital (12.6%
post-IPO stake), DAG Ventures (12.4%), Temasek Capital (8.2%),
co-founder and CEO Christopher Lien (6.7%), Focus Ventures (4.9%)
and Crosslink Ventures (4.6%).
Model N, the second software company, provides
revenue management software to blue chip companies in the
life science and technology sectors, including Bristol-Myers,
Johnson & Johnson, Merck and Dell. Despite the company's
current unprofitability, it believes it can take advantage of an
estimated $5 billion in annual revenue management spending for
science and technology companies. The primary backers include
founder and CEO Zach Rinat (22.1% post-IPO stake), Meritech
Capital Partners (11.1%) and Accel Partners (8.7%). Model N
originally filed for its IPO in February 2013 after filing
confidentially in December.
Aviv and West Corporation were the two oldest deals in the US
Pipeline, having filed in 2008 and 2009, respectively, and are
both private-equity backed. Though Aviv REIT initially filed its
latest offering in December 2012, it originally filed for an IPO
in 2008 before ultimately withdrawing that offering in
2009. The primary backers are Lindsay Goldberg (45.8%
post-IPO stake) and CEO Craig Bernfield (12.3%). West
Corporation filed for its IPO in late 2009 and hopes to finally
complete its offering after being taken private by Thomas H. Lee
Funds (43.5% post-IPO stake), the founders (18.1%) and Quadrangle
Group Funds (9.1%).
With this collection of deals scheduled to price, next week will
be the busiest week for US IPOs thus far in 2013 (three other
weeks have had five IPOs). It is also noteworthy that six of the
seven companies initially filed confidentially, the exception
being West Corporation, which would not have qualified to file
confidentially under the JOBs Act. In addition to the deals that
are already on the calendar for next week, there are several
deals that are expected to launch in the coming weeks. Among
them, grocery store chain Fairway Market (FWM) expects to launch
in the first week of April. Deals for homebuilder Taylor
Morrison Homes (TMHC), packaged foods company Pinnacle Foods (PF)
and theme parks operator Seaworld (SEAS) may also be just around
|Deals scheduled for week of March 18
|HF2 Financial Management
|Blank check company formed to acquire a financial
|Leading conferencing and call center provider LBO'd by
TH Lee and Quadrangle.
|Provides revenue management software to the life
science and technology sectors.
|Developing antibiotics to treat serious abdominal and
urinary tract infections.
|REIT specializing in owning and acquiring skilled
|Biotech focused on developing small molecule drugs to
use against hepatitis C.
|Provides a cloud-based digital ad management
*$ in millions.