Salesforce.com plans IPO


19 Dec 2003

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Online CRM provider Salesforce.com has filed a statement with the US Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO) on the Nasdaq stock exchange.

Morgan Stanley will act as sole book runner for the IPO and co-managers will be Deutsche Bank Securities, UBS Securites, Wachovia Capital Markets and William Blair & Co.

Salesforce.com was founded in 1999 by former Oracle executive Marc Benioff who pioneered the notion of delivering enterprise applications via a website, often by dial-up modem, and billing companies ranging from the smallest to the largest of firms on a pay-as-you-use basis. This business model ran contrary to the multi-million dollar lock-in contracts which were the norm for traditional enterprise players such as Siebel and Oracle.

Salesforce.com currently has more than 93,000 users across 6,700 companies in 110 countries, including global firms such as AOL Time Warner, Dow Jones, PricewaterhouseCoopers and Nokia. Irish customers include Am-beo, Cape Clear and Jurys Doyle Hotel Group. In a recent issue of Business Week, Salesforce.com was listed in its InfoTech 100, along with Google, as one of the few tech IPOs in waiting.

This year, Salesforce.com turned in its first profitable quarter with US$19.1m in revenues. Listed as the world’s third most influential enterprise software applications vendor after Microsoft and SAP by UK magazine Computer Business Review, the company in recent days revealed a €100m investment in new product upgrades as well as striking a major landmark enterprise deal with Dell.

The 50 people employed at Salesforce.com in Ireland are chiefly involved in software sales and distribution as well as maintaining the international content of Salesforce.com’s corporate websites. Within two years, the European operation has expanded consistently and has gained 11,000 individual users across Europe as customers.

By John Kennedy