IBJNews

ExactTarget preparing for another IPO attempt

Back to TopCommentsE-mailPrintBookmark and Share

ExactTarget Inc., an e-mail marketing company that canceled plans for an initial public offering during the 2009 financial crisis, has hired JPMorgan Chase & Co. and Deutsche Bank AG to handle a new attempt, said two people familiar with the matter.

The Indianapolis-based company will sell shares when market conditions allow, said one of the people, who declined to be named because the plans haven’t been announced. ExactTarget has been keeping an eye on the IPO market for months, but has been content to grow through venture capital in the meantime.

ExactTarget would follow Responsys Inc., another provider of marketing software, which has gained 3.3 percent since its April debut, and competitor Eloqua Ltd., which announced IPO plans last month. The companies are bucking the trend that has resulted in at least 24 U.S. IPOs getting shelved or scrapped in the past three months, according to data compiled by Bloomberg.

In May 2009, ExactTarget withdrew its initial filing, opting to raise $70 million in private capital from investors including Battery Ventures and Scale Venture Partners.

ExactTarget said in July that revenue jumped 41 percent last year to $134 million. The company has more than 1,000 employees, compared with 283 at the end of 2007.

In its 2007 initial filing for about $86 million, ExactTarget said Thomas Weisel Partners LLC and William Blair & Co. were hired to manage the IPO. The company was about half its current size three years ago, with sales of $32.8 million in the first six months of 2008, a separate filing showed.

Companies have withdrawn or postponed IPOs seeking to raise more than $3.4 billion amid investors’ concerns about the economy, the European debt crisis and Standard & Poor’s downgrade of the U.S. credit rating. Twenty-three have been pulled since the Aug. 5 downgrade, which roiled markets.

Responsys, based in San Bruno, Calif., reported 2010 sales of $94.1 million. As of Monday’s market close, the company traded at 6.2 times last year’s sales. By that measure, ExactTarget would be valued at $831 million.

Eloqua, based in Vienna, Va., recorded revenue of $50.8 million last year. The company plans to raise $100 million in an initial share sale also led by JPMorgan and Deutsche Bank.

Mitch Frazier, a spokesman for ExactTarget, declined to comment, as did Tasha Pelio, a spokeswoman for New York-based JPMorgan, and Scott Helfman, a spokesman for Frankfurt-based Deutsche Bank.

ADVERTISEMENT

  • Safety?
    I have a better question:

    Are they still offshoring off-hours support?

    ("This is Peggy...")
  • Maybe this one's better
    Maybe this one's more of a safe bet than Angie's List?? Don't you know someone at Exact Target? I wonder if she has any insights....
  • So why haven't they purchased.....

    As time progresses, I've wondered why they've not acquired LSoft (LISTSERV). Eric's been running it for 25+ years, has a bazillion lists, some with 6+ digits of members.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

  2. Does the $100,000,000,000 include salaries for members of Congress?

  3. "But that doesn't change how the piece plays to most of the people who will see it." If it stands out so little during the day as you seem to suggest maybe most of the people who actually see it will be those present when it is dark enough to experience its full effects.

  4. That's the mentality of most retail marketers. In this case Leo was asked to build the brand. HHG then had a bad sales quarter and rather than stay the course, now want to go back to the schlock that Zimmerman provides (at a considerable cut in price.) And while HHG salesmen are, by far, the pushiest salesmen I have ever experienced, I believe they are NOT paid on commission. But that doesn't mean they aren't trained to be aggressive.

  5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

ADVERTISEMENT