ServiceNow, which provides an on-demand software platform to
automate enterprise IT operations, announced terms for its IPO on
Tuesday. The San Diego, CA-based company plans to raise $186
million by offering 11.7 million shares (23% insider) at a price
range of $15 to $17. At the midpoint of the proposed range,
ServiceNow would command a market value of $2.4 billion.
Customers include a variety of global enterprises, including
Barclays, Johnson & Johnson and Qualcomm. In the first
quarter, sales increased 88% to $47 million, accelerating from
83% growth in the 4Q11. Primary backers are venture capital firms
JMI Equity and Sequoia Capital, which will own 49% and 20% of
shares, respectively, after the offering. The only selling
stockholder is founder and Chief Product Officer Fred Luddy.
ServiceNow, which was founded in 2004 and booked $150 million in
sales for the 12 months ended 3/31/2012, plans to list on the
NYSE under the symbol NOW. Morgan Stanley, Citi, Deutsche Bank
Securities are the joint bookrunners on the deal, the third to be
added to the calendar this week.