WALTHAM, Mass. – Lionbridge Technologies Inc., a worldwide provider of globalization services to technology companies, went public August 20, offering 3.5 million shares at $10 apiece. The company’s stock priced below its $12 to $14 filing range.
Underwritten by Prudential Securities, U.S. Bancorp Piper Jaffray and Adams, Harkness & Hill Inc., the initial public offering left 14.7 million shares of stock outstanding.
Venture backers included Advent International Corp., Morgan Stanley Dean Witter Venture Capital, Arcachon, and Capital Resource Lenders III. There were no selling shareholders.
As a provider of globalization services, Lionbridge adapts products and services to meet the demands of local cultures. The company creates and maintains multilingual versions of its clients’ software and hardware. It also offers Web-based technical support, training materials and sales and marketing information for worldwide release via traditional means and the Internet.
Lionbridge will use the estimated $32 million in proceeds from the offering to repay debt, obtain working capital, establish a public market for its common stock and increase its visibility in the marketplace. The company also will use the proceeds for future acquisitions to expand its markets and to provide liquidity to existing stockholders and option holders.
The company has never been profitable, losing $7.6 million in 1997 and $4.3 million in 1998.
Marcia Hooper, a partner with the Information Technology Group of Advent, joined the company’s board in December 1996. Guy de Chazal, a managing director of Morgan Stanley and the president of Morgan Stanley Dean Witter Venture Partners followed in February 1998. Stephen Jenks, a member of Capital Resource Management, joined the board in March.
Lionbridge Technologies – Selected Financial
(in thousands, except per share data)Year Ended December 31, Six Months Ended June 30,
1996 1997 1998 1998* 1999*
Total revenue 28,134 26,462 38,412 18,132 23,783
Net loss -213 -7,654 -4,262 -2,523 -9,765
Net loss per share -8.85 -2.99 -1.89 -4.64