JVP’s Exit: US-Based QlikTech is Headed for an IPO
QlikTech is aiming at a market cap of $712 million. JVP holds a quarter of
by Batya Feldman
It was expected, under way, but still – it is not every day that an Israeli venture capital fund can boast of a fine exit through an IPO on the NASDAQ stock exchange, especially not in recent years.
US-based QlikTech is very close to an IPO on the American stock exchange, aiming for a market cap of $712 million. The Company’s shares are expected to begin trading on July 16.
Israeli venture capital JVP, founded and managed by Erel Margalit, will benefit from the move: it holds 25.4% of QlikTech’s shares.
As early as February of this year we reported here that the Company selected Morgan Stanley, Citigroup and JP Morgan as underwriters, and that it is preparing a prospectus.
QlikTech is considered to be one of the business intelligence (Business Intelligence) companies offering a relatively user friendly and efficient solution. In 2008, the Company’s revenues reached $120 million and it has been profitable for the last few years.
Cash during crisis
According to IDC, in 2008, QlickTech held a 1.3% share of the BI market. The Company was on the verge of an IPO two years ago, but the plan had been postponed. As of now, QlikTech is aiming at a price per share of $8.5-9.5.
Another significant QlikTech shareholder aside from JVP is venture capital fund Accel Partners (26.7%). Margalit, who often speaks about the significance of not selling good portfolio companies for pennies, can boast of another success while being true to his word.
Margalit has been ranked among the world’s best venture capitalists on the Forbes Midas List quite a few times. He is known as someone who can raise funds even in times of crisis. Accordingly, JVP has raised significant funds during the last two crises: JVP IV was raised in 2001, at the height of the dot.com crisis, and JVP V was raised in 2008, during the credit crisis, a time defined by an overall lack of available resources for high tech companies and venture capital funds. By the way, even the investment in QlikTech was made at the height of a crisis – in 2003.
Three harsh years for the VC industry
As far as the local VC industry is concerned, JVP is the first fund to enjoy an IPO during the current wave of IPOs. The last time an Israeli VC-backed technology company made an offering on the NASDAQ was three years ago - Mellanox Technologies.
JVP manages $818 million in five funds. Last week, JVP announced it has raised a $25 million annex fund for JVP IV.
JVP invests in technology companies in the fields of communications, media, Web, mobile communications, advertising, semiconductors, enterprise software and gaming. Its portfolio consists of 34 companies, the most promising of which are Altair Semiconductors, CyberArk, Magink and Solgel.
In 2008, QlikTech held a 1.3% share of the Business Intelligence market. It planned to IPO on NASDAQ that same year, but the plan was postponed