Act-On CEO Raghavan Says Company May Go Public in 2016 or 2017Olga Kharif
Act-On Software Inc., the Beaverton, Oregon-based company whose software automates the way companies market their services online, may go public later in 2016 or in 2017, Chief Executive Officer Raghu Raghavan said.
The company is on track to post revenue of more than $50 million this year, at least a 67 percent jump from 2014.
“Average deal sizes are going up for us,” Raghavan said Tuesday in an interview. “We are growing 60-70 percent a year. Three million companies in North America and Western Europe are ready for this stuff.”
Act-On, which has about 3,000 customers in industries ranging from industrial manufacturing to technology, has talked to banks about its plans but hasn’t chosen any underwriters at this point, he said. The company may go public with a valuation of $500 million to $600 million.
Raghavan said he wants to reach annual revenue of at least $90 million before proceeding with an initial public offering. Last year, the company booked about $30 million in sales.
It also has been approached by potential suitors, Raghavan said, without naming any. The company wants to stay independent.
“The company is not for sale, but it doesn’t mean the company could not be bought,” he said.
Customers pay $6,000 to $250,000 a year for the company’s software and services, Raghavan said. The company is working to simplify and further automate its software. Later this year, it will add new predictive-analytics functionality, which will tell salespeople when a lead is ready to buy, or which leads to call first, he said.
Act-On has raised $74 million in funding from investors including Technology Crossover Ventures, Northwest Venture Partners and Stanford University.
Raghavan previously co-founded e-mail marketing company Responsys Inc., which was purchased by Oracle Corp. in 2014 for about $1.5 billion.