Guidewire to raise $100m+

Guidewire (San Mateo, CA, USA) has now set January 24th 2012 as the date for the final pricing on their upcoming IPO. The company could raise as much as $103 million at a half-billion-dollar-plus valuation in its anticipated initial public offering, according to share price and volume targets disclosed by the company in a regulatory filing.

Guidewire is an Independent Software Vendor providing solutions for the Insurance Industry with a core system suite, which spans the entire property/casualty (P/C) insurance lifecycle—underwriting, policy administration, billing, claims, and reinsurance management. The Value Proposition of Guidewire is to replace Insurance typical mainframe based legacy core systems.

Guidewire works directly with their Insurance Industry clients or through a network of system implementation partners, certified by Guidewire’s PartnerConnect program. The company has international offices in Germany, UK, France, Ireland, Australia, Japan, Hong Kong and China.

Founded in 2001, Guidewire  generated revenue of $144.7 million and $172.5 million in fiscal years 2010 and 2011, respectively, and $52.4 million for the three months ended Oct. 3.The San Mateo-based company claimed a profit of $15.5 million and $35.6 million in fiscal years 2010 and 2011, respectively, including a $27.2 million tax benefit in fiscal 2011, and $4.8 million for the three months ended Oct. 31.

Guidewire is offering 7.5 million shares at a price range of $10 to $12, and it has given underwriters the right to buy another 1.1 million shares.

Source: TBK Research