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INTACCT IPO MOVES FARTHER AWAY Featured

Robert Reid, IntacctIntacct CEO Robert Reid has pushed the possibility of an initial public offering farther into the future than seemed likely a year ago. With capital so readily available from banks, the cost of such lending is less than the cost of raising capital via an IPO, he said. Reid made the comments at this week’s Advantage user and reseller conference. He gave no timeframe but agreed the state of the market makes an offering less necessary.

Given the cloud software company’s amount of deferred revenue, cost of customer acquisition and lifetime value of the customer, the banks see Intacct as representing very little risk, he said. “We have so many different facilities to be able to fund our business for five to 10 years,” Reid said. He noted Intacct increased R&D spending 75 percent in the last year, something that could not be accomplished by a public company. At last year’s conference, Reid said a cloud company needs about $80 million to $100 million in revenue and to grow at 35 percent annually. Prior comments also suggest that Intacct was ready to begin the process early in 2014, but market conditions changed.

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