Medidata continues IPO thaw, looks to raise $86M
Medidata Solutions, a company that streamlines clinical development and research processes for biotech firms, announced the terms of its IPO today — setting its price per share at $11 to $13 for 6.3 million shares. The sale could generate as much as $86.3 million for the New York-based company and mark the third U.S. software IPO in 2009 (behind Rosetta Stone and SolarWinds).
The money brought in will be used for several capital expenditures and prospective acquisitions, reports VentureWire. It might also go toward repaying some or all of its $14.6 million debt. Medidata plans to be listed as MDSO on the Nasdaq Global Market.
Filed in January, the IPO would not offload shares owned by Medidata’s venture investors. Instead, each firm, including Insight Venture Partners, Milestone Venture Partners and Stonehenge Capital, will see a reduction in its percent stake. The company previously raised $12.6 million in capital over three rounds from these firms, as well as GlobalNet Management, Greenhill SAVP, Lambda Capital and several private investors.
The sale is being underwritten by Citigroup, Credit Suisse Group, Jeffries & Co. and Needham & Co. They will have the option to purchase 945,000 more shares from stockholders to cover overallotments, VentureWire reports.
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About the Author, Camille Ricketts
Camille is the lead writer for GreenBeat. She came to VentureBeat from Google where she worked on its traditional platforms team, particularly in TV. Before that, she was a reporter for the Wall Street Journal in New York and London. Follow her on Twitter at @camillericketts, and follow VentureBeat on Twitter at @venturebeat.
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