A Look at VC Returns from Oracle’s Eloqua Buy — CORRECTED
Backers of Eloqua, a provider of revenue management software that went public in August, will be seeing a return somewhat earlier than expected now that Oracle is acquiring the Vienna, Virginia-based company.
At Oracle’s stated offering price of $871 million, or $23.50 a share, VCs stand to see a strong return on investment, particularly given that the company raised about $41 million prior to going public, according to Thomson Reuters.
VC already sold some shares in the IPO — with the three largest backers, JMI Equity, Bay Partners, and Bessemer Venture Partners each selling about a quarter of their holdings in the offering. (CORRECTED: VCs had filed to sell about one-fourth their shares in a secondary offering, but this was not completed.) Looking at their prior sales, plus their share of Oracle acquisition, the full breakdown is as follows.
JMI Equity: The firm owned 24% 8.3 million shares of Eloqua at the time of the IPO. It sold about $24 million worth of stock in the offering, and remaining shares are worth about $146 million, based on Oracle’s purchase price. Total value: $195 million.
Bay Partners: The firm owned about 18% 6.26 million shares of Eloqua at the time of the IPO. It sold about $18 million worth in the offering, and remaining shares are worth about $110 million. Total value: $147 million.
Bessemer Venture Partners: The firm owned 15% 5.16 million shares of Eloqua at the time of the IPO. It sold about $15 million worth in the offering, and remaining shares are worth about $90 million. Total value: $121 million.
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