MOUNT LAUREL, N.J. – Bluestone Software Inc., a provider of software for enterprise interaction management, went public September 24, offering 4 million shares at $15 apiece. The company’s stock priced at the high end of its $13 to $15 filing range.
Underwritten by Deutsche Banc Alex. Brown, SoundView Technology Group, C.E. Unterberg, Tobin and Legg Mason Wood Walker, the initial public offering left 17.3 million shares of stock outstanding.
General Electric Capital Corp., Patricof & Co. Ventures Inc. and Fostin Capital Partners were venture backers. There were no selling shareholders.
Bluestone’s software allows businesses to extend information over the Web in a controlled manner and to support high volumes of users and interactions. The company’s solution allows businesses to Web-enable their existing systems, develop Web-based applications, integrate their applications and engage in e-commerce.
The company plans to use the expected $54.9 million generated from the IPO for product development, sales and marketing, and working capital.
Bluestone has never been profitable, losing $3.8 million in 1997 and $11.6 million in 1998.
Gregory Case, a managing director at Patricof, and William Hulley, a general partner at Fostin, joined the company’s board of directors in April 1997. Anton Simunovic, a senior vice president at the Equity Capital Group of General Electric, followed in April 1998.
Bluestone Software – Selected Financial
(in thousands, except per share data)
Years Ended December 31 Six Months Ended June 30
1996 1997 1998 1998* 1999*
Total revenue 8,073 9,741 8,118 3,831 6,592
Net loss -2,616 -3,798 -11,605 -4,512 -7,469
Net loss per share -0.67 -1.39 -4.12 -1.6 -2.65