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by Alan Alper, MA Editorial Staff
Posted on Friday, May 27, 2005 5:22:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | SSA Global cuts price and size of its IPO to attract investors; QAD reports fiscal Q1 results that meet downgraded expectations but fall below year-earlier results. |
Financial developments in the mid-tier ERP space yesterday reveal a business that remains challenging to even the most established players, as an accelerating architecture refresh cycle and continuing market consolidation exert fiscal pressure across the sector. In the early afternoon SSA Global reduced the number and price of shares in its initial public offering in a bid to capitalize on the resurgent capital markets for technology stocks and end a nearly 12-month-long bid to go public. Later in the day QAD Inc. reported fiscal first quarter results that were inline with recently downgraded guidance, but not up to snuff with the company's year-earlier performance. In its revised initial public offering (IPO), Chicago-based SSA offered 9 million shares at $11 each. It had originally planned to sell 14.3 million shares at $13 to $15 each. To make the offering more palatable, the company eliminated a $100 million special dividend payment to its controlling stockholders, including private equity firms General Atlantic and Cerberus Capital Management, which even after the IPO will own over two-thirds of SSA's shares. [Click to continue] |
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