DENVER – Exactis.com Inc., an electronic mail marketing company, went public November 19, offering 3.8 million shares at $14 apiece. The company’s stock priced in the middle of its $13 to $15 filing range.
Thomas Weisel Partners L.L.C., Dain Rauscher Wessels and Wit Capital Corp. underwrote the initial public offering, which left 12 million shares outstanding.
Collectively, selling stockholders sold 270,000 shares of stock. American Express Travel Related Services Co. Inc., Tribune Media Services Co., Telecom Partners L.P., The Centennial Funds, Global Retail Partners L.P., Softven No.2 Investment Enterprise Partnership and Boulder Ventures Ltd. were venture backers.
The company, formerly known as InfoBeat, provides e-mail marketing and communications outsourcing services, primarily through its e-mail newsletter service and its order and trade confirmation delivery service. The company sends about 10 million e-mails each day on behalf of clients such as Egreetings Network Inc. and Sony Music Entertainment Inc.
The $45.3 million in proceeds expected from the IPO will be used for general corporate purposes, including working capital. Although there were no formal plans for the use of proceeds at press time, the company might use funds from the offering for the possible investment in or the acquisition of complementary businesses, technologies, services or products.
Exactis.com has never been profitable, losing $7.7 million in 1997 and $7.9 million in 1998.
Adam Goldman, a general partner and principal at Centennial, joined the company’s board of directors in March 1996. David Williams, president and chief executive of Tribune Media Services Co., joined the company’s board of directors in December 1996. Linda Levison, a principal at Global Retail Partners, joined the company’s board of directors in July 1998. Pierric Beckert, a vice president at Interactive Enterprise, a division of American Express, joined the company’s board of directors in August 1999.
Exactis.com – Selected Financial
(in thousands, except per share data)
January 30, 1996 (inception) Year Ended Nine Months Ended
to December 31 September 30
December 31, 1996 1997 1998 1998 1999
Total revenue 855 2,779 1,990 7,267
Net loss -3,392 -7,699 -7,897 -5,502 -6,253
Net loss per share -3.4 -7.75 -7.96 -5.56 -6.27