Tech IPOs Come to Life: 2 Deals on Deck

SSNI spiked today ... and these two deals could be just as hot

   

It’s hard to believe, but Silver Spring Networks (NYSE:SSNI) was only the second tech IPO of the year. No wonder the company — a top developer of technologies for electric grids — has attracted so much attention. In today’s trading, the shares are up about 28% to over $21.

Still, some other hot tech deals will hit the market soon. The calendar is still fairly light, with only two planned for next week, but each should find lots of buyers.

yahoo sign 630 200x200 Tech IPOs Come to Life: 2 Deals on Deck
Mayer’s Yahoo: A “Global Tech Company?”

Here’s a quick look at each one:

Model N

Model N develops revenue management software for the life science and technology industries, with capabilities including price optimization, contract negotiation and the smart use of incentives and rebates. Such things are vitally important for companies. According to a report from International Data Corporation, the lack of effective systems has resulted in $11 billion in annual lost revenues for the life science industry alone.

That’s undoubtedly part of the reason Model N has been growing at such a nice pace. The company has customers like Johnson & Johnson (NYSE:JNJ), Bristol-Meyers (NYSE:BMY), Merck (NYSE:MRK) and VMware (NYSE:VMW) and, over the last three years, revenues have gone from $50.4 million to $84.3 million.

In fiscal 2012, though, Model N posted a net loss of $5.7 million … but that in part could be because of ramped-up R&D and marketing. Plus, don’t let the red earnings overshadow the fact that Model N’s market opportunity is massive. The company believes that its addressable market is about $17.3 billion.

As for the IPO, Model N plans to issue 6.5 million shares at a price range of $12.50 to $14.50. The lead underwriters include JP Morgan (NYSE:JPM) and Deutsche Bank (NYSE:DB).

Marin Software

Another deal that should get lots of demand is Marin Software. The company operates a cloud-based system for online ad campaigns, which helps to optimize costs and revenue generation. Of course, there are integrations with main platforms like Microsoft‘s (NASDAQ:MSFT) Bing, Google (NASDAQ:GOOG), Facebook (NASDAQ:FB) and Baidu (NASDAQ:BIDU).

At the core of the technology is Big Data techniques, allowing for in-depth ongoing analysis. Based on this, Marin helps advertisers improve the ROI for making bids on online advertising purchases. Marin currently has over 531 active advertisers on its platform, which accounted for about $4.7 billion in annual advertising spend.

From 2010 to 2012, revenues went from $19 million to $59.6 million. Unfortunately, Marin has also posted consistent losses. Last year, the net loss was $26.5 million.

Marin plans to issue 7 million shares at a range of $11 to $13. The lead underwriters include Goldman Sachs (NYSE:GS) and Deutsche Bank.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.”Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/tech-ipos-come-to-life-2-deals-on-deck/.

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