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Dynatrace files papers for IPO
Posted on Monday, 08 July 2019 13:35
Dynatrace, a software company that competes with Cisco and Broadcom, has filed registration documents for an initial public offering (IPO) in New York that could raise around USD 300.00 million.

The preliminary paperwork was filed with the US Securities and Exchange Commission late last week, with a placeholder as a proposed maximum offering price.

It is likely that the final amount raised will be different as this figure is used to calculate registration fees.

Goldman Sachs, JPMorgan, Citigroup, Barclays, Jefferies and RBC Capital Markets, among others, have all been hired to underwrite the stock market flotation, the terms of which have not yet been disclosed.

Dynatrace offers a market-leading software intelligence platform for enterprise cloud to address the growing complexity faced by technology and digital transformation.

The group, as of 31st March 2019, counted 2,300 customers in over 70 countries across industries that include banking, insurance, retail, manufacturing and travel.

Dynatrace plans to use proceeds from the IPO for general corporate and working capital purposes, as well as to repay debt under its first and second lien term loan facilities.

In the year ended 31st March 2019, the business posted a net loss of USD 116.19 million on revenue of USD 430.97 million, compared to a net profit of USD 9.22 million on turnover of USD 398.05 million in the previous 12 months.

Dynatrace is currently owned by Thoma Bravo, which acquired the business via Compuware for USD 256.00 million in 2011.

The private equity firm is expected to retain an undetermined stake following closing of the IPO.

According to Zephyr, the M&A database published by Bureau van Dijk, Dynatrace is joining 143 stock market flotations in the technology sector – including software publishing, data hosing and computer systems design – announced or completed in 2019 to date.

Uber Technologies raised USD 8.10 billion in its New York IPO in the largest of these, followed by ride hailing rival Lyft, which listed on Nasdaq and fetched USD 2.34 billion in the process.

Pinterest, Trainline, Tradeweb Markets, Change Healthcare and Alight, among others, also announced or completed flotations this year.

© Zephus Ltd