We previously reported that NetSuite had selected Credit Suisse as their sole banker on the IPO. It turns out they’ve added WR Hambrecht to the deal as well. We had an indication that they would be hoping for a $1 billion+ valuation out the door. There’s no way to confirm that now as pricing information is only determined just prior to the actual IPO and the company is now in what’s called a “quiet period” where they will not be discussing anything about the deal with the press or anyone else. The estimate sounds about right, though. Salesforce is worth about $5 billion based on current revenues of $500 million/year, and SAP has a market cap of $62 billion on nearly $13 billion in revenues. NetSuite’s revenues are now nearly $25 million/quarter. It will be interesting to see how full a valuation the market provides to NetSuite’s integrated ERP and CRM solutions.
The company has raised over $100 million in venture capital, and they will likely be raising another $75 million or so in this transaction.
Oracle’s Larry Ellison owns a majority of the company, and stands to make a significant amount of money in the IPO.