BOSTON – Art Technology Group Inc., a developer of customer relations management and electronic commerce software products, completed an initial public offering July 20. The company sold 5 million shares of common stock at $12 each, the top of its $10 to $12 offering range.
Underwriters included Hambrecht & Quist, U.S. Bancorp Piper Jaffray, Thomas Weisel Partners and Wit Capital Corp. The company currently has 30.56 million common shares outstanding. Estimated proceeds of $60 million will be used for debt repayment and working capital.
Tudor Private Equity Fund, GMN Investors II and SOFTBANK Ventures Inc. were venture backers. There were no selling shareholders.
Art Technology, incorporated in December 1991, develops products that allow businesses to efficiently build, manage, market and support customer relations via the Internet. Its core offering, the Dynamo product suite, is used by Eastman Kodak, Hilton Hotels, and J. Crew.
Thomas Matlack, a managing partner at Mugunticook Management, joined the company’s board in November 1997, followed shortly thereafter by Charles Lax, a general partner at SOFTBANK Technology Ventures. Robert Forlenza, managing director of Tudor Investment Corp., joined the board in August 1998, and Jeffrey Newton, managing director of Gemini Investors, joined in September 1998.
Art Technology – Selected Financial
(in thousands, except per share data)
Year Ended December 31, Three Months Ended March 31,
1994 1995 1996 1997 1998 1998 1999
Total revenue 753 798 3,902 6,457 12,137 1,901 4,420
Net loss -234 -467 -1,442 -4,228 -2,850 -949 -877
Net loss per share -0.03 -0.06 -0.19 -0.50 -0.50 -0.11 -0.12