Boulder-based Rally Software Development Corporation has filed for a $70 million initial public offering.
This week's announcement wasn't a surprise to those in the Boulder technology scene, who have been wondering when the fast-growing company would go public.
Rallymakes cloud-based software that developers use to manage projects with what they term "agile" development techniques. Boulder County Business Report publisher Chris Wood says Rally has been one of the fastest-growing companies in Colorado since its inception in 2002. Last year the company was named "one of America's best places to work" by Outside magazine.
"A couple of years ago, Rally CEO Tim Miller sat in on one of our CEO Roundtables and said that the company was trying to find an optimal time for an IPO," Wood says. "Back then, the company decided to raise $20 million in venture capital instead. With the booming stock market, they’ve apparently found that optimal time, with the filing this week."
Wood adds that the $70 million figure is just a placeholder. The exact size of the IPO won't be known until the company sets a share price and determines how many shares it will offer.
Interview highlights:
On how Rally will use the money raised in the initial public offering...
"The company’s registration statement says that the funds will be used to increase Rally’s financial flexibility, marketing and sales efforts. It will also use funds to invest in new data centers and international reach, and to possibly acquire other companies. In short, it can use the funds for a lot of purposes."
On what we know about the company...
"Given that Rally has been privately held, many details previously were unknown to the public. But the registration statement filed with the Securities and Exchange Commission tells us a lot. For example, in the company’s fiscal year 2012, which ended January 31st, Rally reported revenue of $41.3 million. That was up 39 percent from the prior year. The company did report a loss of $11.6 million. The filing also notes that Rally has about 155,000 paid users and more than 1,000 customers."
On how Boulder is doing in regard to its share of public companies...
"Not too bad! Just in October, we saw White Wave Foods go public, raising about $391 million. Rally’s offering is far smaller than that, but it will make about the 12th local company to be traded on a major exchange."
