San Francisco, CA and Boston, MA, April 7, 2011 - Housatonic Partners, a private equity investment firm, announced today the successful initial public offering of San Francisco-based ServiceSource®, a global leader in service revenue management solutions, which occurred on March 25, 2011. Housatonic was the first institutional investor in ServiceSource in 2003 and has remained an active capital partner in the firm.
“Congratulations to ServiceSource on its IPO in what remains a challenging climate for public offerings,” said Barry Reynolds, General Partner of Housatonic and a member of the ServiceSource Board of Directors. “Having been there from the beginning, we’re proud of our long term partnership with Mike and his team. They have clearly achieved exceptional success pioneering and now leading the market for service revenue management.”
“Housatonic Partners has played a critical role in ServiceSource’s growth,” said Mike Smerklo, Chairman of the Board and CEO, ServiceSource. “As a capital partner, Housatonic Partners helped us acquire the company in 2003 and has made additional investments and assisted us in negotiating the strategic transactions that followed. As active, strategic advisors and board participants, Housatonic Partners helped us to become the global leader in service revenue management that we are today.”
On March 24th, ServiceSource announced that it had priced its initial public offering of 11,940,133 shares of common stock at $10 per share. The shares began trading on The NASDAQ Global Market on March 25, 2011 under the ticker symbol “SREV,” and rose nearly 21.8% to close at $12.18.
Of the shares offered, ServiceSource offered 8,000,000 and certain selling stockholders offered 3,940,133. In addition, ServiceSource has granted the underwriters a 30-day option to purchase up to an additional 1,791,020 shares of common stock at the initial public offering price to cover over-allotments, if any. ServiceSource did not receive any proceeds from the sale of shares by the selling stockholders.
ServiceSource focuses on driving increased service revenue, profitability and customer satisfaction for technology and technology-enabled healthcare and life sciences companies. ServiceSource manages the sales process for renewals of maintenance, support and subscription agreements on behalf of its customers. ServiceSource's integrated solution consists of a suite of cloud applications, dedicated service sales teams working under our customers' brands and a proprietary Service Revenue Intelligence Platform. By integrating software, managed services and data, ServiceSource addresses the critical steps of the renewals process including data management, quoting, selling and service revenue business intelligence. ServiceSource's business is built on its pay-for-performance model, whereby its revenues are based on the service renewals customers achieve with its solution.
For more information on ServiceSource, visit http://www.servicesource.com. To connect with ServiceSource, visit us on Twitter, Facebook, LinkedIn and YouTube.
Housatonic Partners is a private equity investment firm founded in 1994 with $1 billion in capital under management. The firm focuses on buyouts and recapitalizations of rapidly growing, profitable service businesses with highly recurring revenue. In partnership with exceptional management, Housatonic has led investments in more than 60 small to mid-sized companies. Visit Housatonic on the web at http://www.housatonicpartners.com.
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