The week kicked off with three new deals added to the U.S. 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 (AVIV), conference call specialist West Corporation (WSTC), and on-demand digital ad management firm Marin Software (MRIN). In addition to the deals that set terms this week, two biotechs -- Tetraphase (TTPH) and Enanta (ENTA) -- 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 (BMY), Johnson & Johnson (JNJ), Merck (MRK), and Dell (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 U.S. pipeline, having filed in 2008 and 2009, respectively, and are both private-equity backed. Although 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 U.S. 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 the corner.
|Deals scheduled for week of March 18|
|HF2 Financial Management||Blank check company formed to acquire a financial services company.||$153||$10||$405|
|West Corporation||Leading conferencing and call center provider LBO'd by TH Lee and Quadrangle.||$500||$22-$25||$1,954|
|Model N ||Provides revenue management software to the life science and technology sectors.||$87||$12.50-$14.50||$331|
|Tetraphase Pharma||Developing antibiotics to treat serious abdominal and urinary tract infections.||$75||$10-$12||$189|
|Aviv REIT||REIT specializing in owning and acquiring skilled nursing facilities.||$251||$18-$20||$908|
|Enanta Pharma||Biotech focused on developing small molecule drugs to use against hepatitis C.||$60||$14-$16||$253|
|Marin Software||Provides a cloud-based digital ad management platform.||$84||$11-$13||$399|
*$ in millions.