Northern,WI 3/20/2013 (BasicsMedia) – Model N (NYSE:MODN):+44% on IPOWho The Heck is Model N ? ... Model N develops sophisticated software that helps companies with revenue management. It’s a fairly new category — but has gotten lots of traction. CEO Zack Rinat said,.. “ I started my first company, Net Dynamics, back in 1995. We eventually sold the company for a big return to Sun. So when I started Model N, I brought in the same group of people I worked with. The opportunity we saw was that enterprise software was only focused on cutting costs, becoming lean and automating processes. We saw this with finance for ERP, sales & marketing for CRM and human capital management with HR. This meant there was a big opportunity to improve the top line of the income statement. For the most part, companies were using homegrown products and spreadsheets for this. Model N would be a much better way.”
Model N was founded in 1999 and booked $84 million in sales for the 12 months ended Dec. 31, 2012, with approximately $92 million in net cash on the balance sheet. Zack Rinat has served as the chairman and CEO since its inception. He previously was vice president and general manager of Sun Microsystems’ NetDynamics business unit, an application software company he co-founded and served as CEO until it was acquired by Sun.
Shares of Model N (MODN) rose 35% on the first day of trading of its initial public offering, selling 6.7 million shares and raising $104 million. Based in Redwood City, Calif., Model N provides revenue management software to the life sciences and technology sector. The company priced at $15.50 a share, above its projected range of $12.50 to $14.50. It lists on the NYSE under the ticker MODN. J.P. Morgan and Deutsche Bank were the lead managers on the deal. Shares rose $6 to 21.55 in late morning trading. Model N shares rose 35% to 20.95 in early afternoon trade.
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