Construction
software company Textura sets terms for $56 million IPO
(From a post
by Renaissance Capital on Nasdaq.com on May 28, 2013)
Textura, which provides on-demand collaboration software for the construction industry, announced terms for
its IPO on Tuesday.
The Deerfield, IL-based company plans to raise $56 million by offering 4
million shares at a price range of $13 to $15. At the midpoint of the proposed range, Textura
would command a fully diluted market value of $304 million.
Textura, which was founded in 2004 and booked $16 million in sales for
the 12 months ended March 31, 2013, plans to list on the NYSE under the symbol
TXTR.
Textura initially filed confidentially on January 9, 2013. Credit Suisse
and William Blair are the joint bookrunners on the deal.
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From
other information found on Nasdaq.com:
Textura: Company Description
We are a leading provider of on-demand business collaboration software
to the commercial construction industry. Our solutions are focused on
facilitating collaboration between owners/developers, general contractors and
subcontractors.
Our solutions increase efficiency, enable better risk management, and
provide improved visibility and control of construction activities for our
clients.
Our collaboration solutions offer robust functionality, data sharing
and exchange capabilities, and workflow tools that support several
mission-critical business processes at various stages of the construction
project lifecycle:
• Construction Payment Management ("CPM") enables the
generation, collection, review and routing of invoices and the necessary
supporting documentation and legal documents, and initiation of payment of
invoices.
• Submittal Exchange enables the collection, review and routing of
project documents.
• GradeBeam supports the process of obtaining construction bids,
including identifying potential bidders, issuing invitations-to-bid and
tracking bidding intent.
• Pre-Qualification Management ("PQM") supports contractor
risk assessment and qualification.
• Greengrade facilitates the management of environmental certification
processes.
In addition, we offer PlanSwift, a take-off and estimating solution
used in preparing construction bids, and Contractor Default Claims Management,
which supports the process of documenting a subcontractor default insurance
claim.
Each of our collaboration solutions was designed from inception as a software-as-a-service ("SaaS") solution with an on-demand
architecture.
Our collaboration solutions each use a single code base and we do not
customize our solutions for any of our clients. Our technology platform is
designed to be highly configurable, scalable, reliable and secure.
We believe we are a leading example of a new generation of on-demand
software solutions focused on enablement of business-to-business collaborative
processes. Such solutions are by design on-demand, as they require neutral
third parties to act as the platform for collaboration by multiple parties and
to facilitate the exchange of data and documents.
We believe the construction industry represents a large and growing
market for technology solutions of all types. The industry, we believe, is
especially attractive for our solutions and our growth because it is
underpenetrated by technology solutions that enable construction industry
participants to more easily collaborate and operate more effectively.
We have established a strong market position serving this industry. As
of March 31, 2013, since the date of launch or acquisition of our solutions,
our clients have used one or more of our on-demand collaboration solutions to
help manage over 13,000 commercial construction projects representing more than
$125 billion in construction value as reported by our clients.
Our collaboration solutions have been used by more than 3,000 general
contractors, owners/developers, and architects. This includes 41 of the 100
largest general contractors in North America, ranked as of May 2012 by
Engineering News-Record based on annual construction revenues.
In addition, based on management estimates, approximately 300,000 subcontractors were active on our solutions during fiscal 2012.
Our solutions are used on construction projects of all sizes, from
small remodels or renovations to multi-billion dollar developments.
Our business was founded in 2004 and we were incorporated in Delaware
in 2007.
Our principal executive offices are located at 1405 Lake Cook Road,
Deerfield, IL 60015, and our telephone number is (847) 457-6500.
Our website address is www.texturacorp.com.
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Textura Hopes Construction + Cloud = IPO Success
Textura leverages cloud tech to help with construction
projects
Textura looks to be the next beneficiary of
the resurgent housing environment now that the company — which operates a cloud
platform for the construction industry — has filed for an initial public
offering.
The company expects to list on NYSE under the symbol of “TXTR,”
and the lead underwriters include Credit Suisse (NYSE:CS), William Blair, JMP
Securities, Oppenheimer & Co. and Barrington Research.
Textura’s software is a full-fledged system for
developers, contractors and subcontractors. Some of the features include
construction payment management, electronic signatures, processing of legal
documents, review and routing of project submittals, estimates, bidding and
risk assessment. It even has the capability to deal with the complicated issues
of the environmental certification process.
By being in the cloud, Textura’s system has the advantage
of efficiently maintaining data, which can be accessed from web-based computers
and mobile devices. It also is ideal for allowing for real-time collaboration
with multiple parties. A key to this was a savvy acquisitions strategy, which
included the purchase of GradeBeam and Submittal Exchange.
Since inception, Textura’s system has managed more than
12,000 projects with a value over $110 billion. More than 3,000 operators have
used the system, including 41 of the 100 largest general contractors in the
U.S.
Things look good on the revenue front, with fiscal 2012
sales coming in at $21.7 million, or 260% better than fiscal 2010. Still,
losses are significant — Textura finished $18.8 million in the red, which it
also did in 2011 — thanks to aggressive investment in its infrastructure,
R&D and sales.
Growth is likely to continue for some time, too. There has
been little innovation in the construction industry, with a reliance
primarily on applications like Microsoft‘s (NASDAQ:MSFT)
Excel. However, the founders of Textura — which include top consultants from PricewaterhouseCoopers
— saw a huge opportunity to help automate a laborious process. The benefits
include not only lower costs but faster project times.
Meanwhile, the construction industry is in the midst of a
big rebound, and the long-term trends are positive, such as with continued
population growth in the U.S. as well as the need to upgrade deteriorating
infrastructure. According to Global Construction Perspectives, the growth in
global spending on construction is expected to grow at an annual rate of 5.2%
from 2010 to 2020.
The IPO market has picked up on the trend. Some recent hot
offerings in the real estate sector include Boise Cascade (NYSE:BCC), up 47% since early
February, and Realogy (NYSE:RLGY),
which has posted a gain of 66% since coming public in October 2012.
Similarly, the cloud industry has been sizzling, with
standout offerings including Workday (NYSE:WDAY),
which has doubled in half a year, and ServiceNow (NYSE:NOW), which has risen 95%
since its 2012 debut.
In other words, the planets seem to be aligned for Textura
success.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO
Strategies, All About Commodities,
and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of
the aforementioned securities.
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Textura
Acquired PlanSwift (this transaction was previously mentioned on Reprographics
101)
2/12/13 TEXTURA
PRESS RELEASE (Link to Press Release):
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