Convio pulls IPO
August 5, 2008 Mark Hrywna
Nearly a year after beginning the process to become a public company – and the same day it reported record revenues — Convio filed to withdraw its initial public offering (IPO).
Convio filed its Form S-1 with the Securities and Exchange Commission (SEC) last August and today filed to withdraw it. The IPO was to raise $86 million for working capital and other general corporate purposes, and possibly for debt repayment and other acquisitions.
The Austin, Texas-based software and service provider to nonprofits also announced Monday afternoon $14.7 million in second-quarter revenue, a 35-percent increase from the $10.9 million during the same time last year. Convio processed $377 million in online donations for clients during the first half of this year, twice the business it did during the first half of 2007.
“With more than $13 million of cash on hand, positive cash flow and innovative new products like Common Ground, we believe being a private, independent company is in the best interest of our clients and company,” said Tad Druart, a spokesman for Convio.
Convio’s withdrawal comes a month after another public company that serves nonprofits was taken off the market. San Diego-based Kintera was purchased for $1.12 per share, $46 million in all, by Charleston, S.C.-based Blackbaud. The acquisition was completed early last month after being announced in May.
Blackbaud also reported earnings on Monday, with total revenue of $72.5 million in the second quarter, a 13-percent increase over the $64 million for the same time last year.
Blackbaud filed a $100-million IPO in February 2004, closing its first trading day in July that year with a share price of $8.62 while Kintera opened publicly in December 2003 at $10.30 per share, after raising $40 million in its IPO. Between Convio and GetActive, which Convio acquired in February 2007 for almost $18 million, the two companies have raised more than $47 million in venture capital funding.