Jive Software is going public with a $100 million IPO, according to a filing with the Securities and Exchange Commission. The company competes with Microsoft, IBM and others.
Jive Software Aug. 24 filed for an initial public
offering worth $100 million, a bid to follow LinkedIn (NASDAQ:LNKD) as the second public company that provides
social media software for businesses.
There is no set date for the IPO.
Jive's core product, Jive Engage Platform, helps
colleagues, co-workers and often their partners communicate and collaborate with
user profiles, group forums, status updates and other tools used in modern
The company has sold its social collaboration software to
635 enterprise customers, including such notables as HP (NYSE:HPQ), McAfee
(NASDAQ:MFE), SAP (NYSE:SAP) and Informatica (INFA). Some 15 million users
leverage Jive, sold on a subscription basis, to augment their workflow.
This user base helped the company to sales of $46.3
million in 2010, compared to $30 million the year before, according to
Jive's S1 filing with the Securities and Exchange Commission
. Through June 30,
2011, Jive revenues totaled $34 million.
However, the company took a loss of $30.6 million through
June 30, as it has spent liberally to prepare for its IPO by building out
infrastructure, its sales force and marketing.
Jive in March also picked executives from Google, Facebook, McAfee and
to serve on its board of directors in preparation for this IPO.
The company later spent money acquiring Proximal Labs
for big data expertise and Offisync for integration
between the Jive Engage Platform and
Microsoft Office. This is a particularly important technology fusion for Jive
customers because Office is the market-leading collaboration platform.
These buys should fortify Jive's competitive positioning
versus enterprise social network products such as IBM Lotus Connections, VMware's
Socialcast, Microsoft SharePoint and Salesforce.com's Chatter, among other
Jive has raised $57 million in funding, from Sequoia
Capital, which owns 36.2 percent of the company; Kleiner Perkins, which owns
14.24 percent; Matthew Tucker with 15.75; and Dave Hersh, who owns 7.26
Jive's IPO bid comes months after LinkedIn took its
social networking Website for professionals public in May, when the company opened trading at $45
a share and quickly stormed to
$85 a share
. LinkedIn posted better-than-expected sales of $121 million for
its first quarter.
Jive would like to capture some of LinkedIn's market
mojo, though it's unclear when it will go public.
"We need to work with the SEC during its comments process," a Jive spokesperson told eWEEK. "We don't know
how long this process will take as it often takes longer than expected.
After completion of the process, the Board and our investment bankers
will determine when we price based on a number of factors including
whether the market conditions are favorable."