Vertex has announced terms for an initial public offering.

The Pennsylvania-based tax-software provider said it plans to raise $317 million by offering 21.2 million shares priced between $14 to $16.

The deal is expected to price the week of July 27. Vertex is listing on the Nasdaq Global Market under the symbol VERX.

The company would have a market value of $2.3 billion at the midpoint of its range.

Vertex reported $336 million in revenue for the year ended March 31. It reported sales of $322 million in 2019, up from $272 million the year before. It posted a profit of $31 million in 2019 but lost $29 million in the first quarter of 2020.

In May, the company paid a special dividend of $123 million to founding family members Amanda Westphal Radcliffe, Stefanie Westphal Thompson, and Jeffrey Westphal, who are the children of founder Ranier Westphal.

Jeffrey Westphal is a former chief executive officer of the company. All three Westphal children are on the board of directors.

The company said proceeds from the deal, which could be as high as $344 million, will be used to pay down the company’s debt, including debt related to the dividend to the Westphal family and will also go toward investments in technology and sales.

Executives including chief executive officer David DeStefano will get about $17 million in stock-based grants.

Vertex was founded in 1978 and employs some 1,100 full-time employees at its headquarters.

The company says it has more than 4,000 customers across 130 countries. Vertex software helps companies track the different taxes they pay, including local indirect taxes and the “value-added” taxes common in the European Union.

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2 responses to “Vertex to Offer 21.2M Shares in IPO”

  1. Your forgetting to mention the dual class stock ownership strcuture. Each share of Class A Stock has 1 vote which is the IPO shares and each share of Class B Stock has 10 votes which is being held by current insiders. The company is a “controlled” public company. I believe you should disclose that in your article.

  2. Earlier this month it was reported that Chinese EV automaker Xpeng Motors had filed for an initial public offering (IPO) on the New York Stock Exchange. The company intends to sell 429,846,136 Class B ordinary shares but, at the time, did not disclose the number of Class A shares will be made available to investors. Today we have our answer.

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