Six years after it was taken private, enterprise data management company Informatica has returned to the New York Stock Exchange (NYSE) with an initial public offering (IPO) of 29 million shares of Class A common stock (ticker INFA).
Priced at $29 per share, the offering raised $841 million. All told, the listing gives Informatica a market capitalization of about $7.9 billion, based on the outstanding shares listed in its filings with the US Securities and Exchange Commission (SEC).
The Informatica listing adds to a vigorous year for software IPOs on US exchanges, led by Playtika Holding Corp.’s $2.16 billion offering. Not including Informatica, a total of 67 software companies have raised almost $33 billion since January 1, according to data compiled by Bloomberg.
Informatica was taken private in 2015 through a $5.3 billion leveraged buyout by private equity firms Permira and the Canada Pension Plan (CPP) Investment Board, ending 15 years of Informatica’s standing as a private company. Founded in 1993, Informatica provides data integration products, including data visualization, data masking, and data replica tools.
During its time as a privately held company, Informatica revamped its business model. It transitioned to a cloud-first business, shifted its revenue pipeline from a perpetual license and maintenance model to one that relies more on subscriptions, and embedded artificial intelligence (AI)-powered automation in its systems.
Today, software subscriptions make up 95% of all net new business revenue, up from 31% in 2016, according to Informatica CEO Amit Walia. Cloud is now its chief revenue driver, with year-on-year (YoY) growth hitting a robust 40%. Earlier this year, the company unveiled its cloud-native Intelligent Data Management Cloud (IDMC) software as a service (SaaS) offering. And each month, its AI engine CLAIRE processes more than 22 trillion transactions in the cloud, doubling every 6 to 12 months, Walia said. The company also helps automate tasks for more than 5,700 active customers. Informatica is likely to use the funds generated by the IPO to pay off the heavy debts assumed by the company when it went private. Based on its SEC filing, Informatica had a net debt of nearly $2.8 billion as of June 30.
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Alex is responsible for writing about trends and changes that are impacting the customer experience market. He had served as Principal Editor at Village Intelligence, a Los Angeles-based consultancy on technology impacting healthcare and healthcare-related industries. Alex was also Associate Director for Content Management at Omdia and Informa Tech, where he produced white papers, executive summaries, market insights, blogs, and other key content assets. His areas of coverage spanned the sectors grouped under the technology vertical, including semiconductors, smart technologies, enterprise & IT, media, displays, mobile, power, healthcare, China research, industrial and IoT, automotive, and transformative technologies.
At IHS Markit, he was Managing Editor of the company’s flagship IHS Quarterly, covering aerospace & defense, economics & country risk, chemicals, oil & gas, and other IHS verticals. He was Principal Editor of analyst output at iSuppli Corp. and Managing Editor of Market Watch, a fortnightly newsletter highlighting significant analyst report findings for pitching to the media. He started his career in writing as an Editor-Reporter for The Associated Press.
