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 IPOwith 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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