ServiceNow, which provides an on-demand software platform to automate enterprise IT operations, announced terms for its IPO on Tuesday. The San Diego, CA-based company plans to raise $186 million by offering 11.7 million shares (23% insider) at a price range of $15 to $17. At the midpoint of the proposed range, ServiceNow would command a market value of $2.4 billion.
Customers include a variety of global enterprises, including Barclays, Johnson & Johnson and Qualcomm. In the first quarter, sales increased 88% to $47 million, accelerating from 83% growth in the 4Q11. Primary backers are venture capital firms JMI Equity and Sequoia Capital, which will own 49% and 20% of shares, respectively, after the offering. The only selling stockholder is founder and Chief Product Officer Fred Luddy.
ServiceNow, which was founded in 2004 and booked $150 million in sales for the 12 months ended 3/31/2012, plans to list on the NYSE under the symbol NOW. Morgan Stanley, Citi, Deutsche Bank Securities are the joint bookrunners on the deal, the third to be added to the calendar this week.
