SalesLogix Corp, the rapidly-expanding Scottsdale, Arizona sale force automation software developer, hopes to raise $42m from an initial public offering on Nasdaq. In a filing with the Securities and Exchanges Commission, the company said the proceeds will be used for general corporate purposes, including paying off a $1.2m bank loan, and to finance possible future acquisitions.
SalesLogix is going public at a time of rapid expansion, with revenues of $15.6m in 1998, a 231% rise from $4.7m in 1997. The company saw a net loss in 1998 of $6.5m, compared to a $5.4m loss the previous year. Formed in 1996, it has carried out two rounds of venture funding, raising $11m. It is currently in the process of buying Enact Inc, a privately-held sales software developer from Ohio.
The firm has found itself in a niche in the middle of a congested market, competing against front office software vendors such as Aurum, Onyx, Pivotal, Siebel and Vantive, as well as out-of-the-box contact manager companies such as Symantec. Due to its success, SalesLogix expects to face competition from new entrants, such as back-office software houses that have announced plans to enter the middle-market front office arena.
