Jive Software Inc., a maker of social-networking software for businesses, picked Morgan Stanley and Goldman Sachs Group Inc. (GS) to lead an initial public offering, said three people familiar with the matter.
UBS AG (UBSN) and Citigroup Inc. (C) will also work on the IPO, which may occur this year if market conditions permit, said the people, who declined to be named because the process is private. Jive may be valued at more than $1 billion, and the company may sell a 10 to 20 percent stake, one person said.
Jive is planning to capitalize on a resurgent IPO market, following the share sales of professional-networking site LinkedIn Corp., music-streaming service Pandora Media Inc. and vacation-rental company HomeAway Inc. Gartner Inc. estimates that Jive’s revenue more than doubled last year to $70 million. As of late 2010, Jive had more than 15 million people from over 3,000 companies using its software.
Jive spokeswoman Ana Andreescu declined to comment. Morgan Stanley (MS) spokesman Pen Pendleton, Goldman Sachs spokeswoman Andrea Rachman and Citigroup spokesman Mark Costiglio also declined to comment, as did UBS spokeswoman Torie Von Alt.
Morgan Stanley has won the lead spot on share sales for many of year’s hottest Web IPOs. The New York-based firm was listed as the first underwriter for LinkedIn, Pandora and HomeAway, as well as Groupon Inc. and Zynga Inc., which have yet to start trading. Goldman Sachs, also based in New York, is co- leading the Groupon and Zynga offerings.
Until last week, this year was on course to be the biggest for IPOs since 2007. That was before Standard & Poor’s cut the U.S. credit rating on Aug. 5, leading to a surge in market volatility, with the Nasdaq Composite Index moving more than 4 percent on four consecutive days. At least 13 U.S. IPOs were postponed or withdrawn last week, according to data compiled by Bloomberg.
Founded a decade ago by Bill Lynch and Matt Tucker, Jive has raised $57 million in venture funding from Sequoia Capital and Kleiner Perkins Caufield & Byers, the two firms that backed Google Inc. Chief Executive Officer Tony Zingale joined the company’s board in 2008 and became CEO last year.
In March, Jive added executives from Google, Facebook and McAfee Inc. to its board, as it prepared for an IPO. Google’s Sundar Pichai, Facebook’s Jonathan Heiliger and McAfee’s Dave DeWalt brought the total number of directors to nine. DeWalt has since resigned from McAfee.
“We’re here to build the next great enterprise software company,” Zingale said in an interview when the board appointments were announced on March 30. “The time was right to expand the board and bring on this kind of expertise.”
Zingale said then that becoming a public company would improve access to capital for mergers and acquisitions and make Jive a more visible competitor to Microsoft Corp., International Business Machines Corp. and Salesforce.com Inc.
Jive’s customers include Nike Inc. (NKE), the world’s largest sporting-goods company; Cisco Systems Inc. (CSCO), the biggest maker of computer-networking equipment; and VMware Inc., the top seller of virtualization software.