Very Positive Article From Bloomberg
Technology News
Fri, 14 May 1999, 1:57pm EDT
BackWeb Technologies Files to Sell 15.7% Stake Through IPO
By Miles Weiss
BackWeb Technologies Files to Sell 15.7% Stake Through IPO
Washington, May 14 (Bloomberg) -- BackWeb Technologies Ltd.,
a developer of software that enables companies to quickly
communicate information over the Internet, will seek to sell
about 15.7 percent of its shares through an initial public
offering.
The company, with headquarters in Ramat Gan, Israel and
offices in San Jose, California, filed with the Securities and
Exchange Commission to sell 5.5 million ordinary shares.
Underwriters will market the stock at $8 to $10 a share.
BackWeb customers can use its software to send data directly
to the desktops of its sales force, field agents, suppliers and
customers. The software is also designed to immediately notify
people who receive the information, thus creating a competitive
advantage for companies who are shipping time-sensitive data.
''It's all about communicating changes in the extended
enterprise and getting business-critical information to people so
they can really react on it and make quick decisions,'' said Gwen
Spertell, BackWeb's senior vice president of sales and marketing.
''Nobody has time these days to sift through everything.''
The software platform has three principal components,
including technology that enables the transmission of digital
data through existing networks without interfering with normal
network traffic. It also includes technology that uses a variety
of display techniques to deliver information and to track the
effectiveness of communications.
Compaq Computer Corp. uses BackWeb to deliver software
upgrades to people who have purchased its Presario computers,
according to Spertell. Cisco Systems Inc. also has deployed the
software to communicate with its sales representatives.
Founded in 1995, BackWeb shipped the first commercial
version of its software in December, 1996. Revenues rose to $9.5
million last year from $5.6 million in 1997.
The company's growth continued into this year, as revenues
climbed to $4.1 million for the first quarter from $1.6 million
during the same period in 1998. BackWeb recorded a net loss of
$3.7 million for the first quarter of 1999, narrowing the $4.6
million loss generated in the year ago period.
Eli Barkat, formerly a managing director at a technology
venture firm, serves as BackWeb's chairman and chief executive.
He has also held positions with Aurec Group, a communications
media and information company, and Daizix Technologies, a
computer assisted design applications company.
BackWeb expects the IPO to raise $44.3 million after
expenses, assuming a share price of $9. The company will use
about $2.9 million of the funds to repay debt, with the remaining
proceeds devoted to general corporate purposes and possible
acquisitions.
The filing said that existing shareholders have invested
$56.5 million in the company and now hold 29.54 million shares,
which works out to an average cost of $1.91 a share. BackWeb will
have 35.04 million shares outstanding after the IPO.
Underwriters for the stock sale will include Goldman, Sachs
& Co.; BancBoston Robertson Stephens; Lehman Brothers; and Wit
Capital Corp. BackWeb will seek to have its shares trade on the
Nasdaq Stock Market under the symbol BWEB.
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