PE-backed Talend reaps $95m in Nasdaq IPO

The group made a strong debut on Nasdaq last Friday, with shares rising to $27.66, up by nearly 54% from the original $18 IPO price, before closing at $25.50. The share price gave Talend a market capitalisation of $760m – substantially more than the $537m valuation at market introduction.

The initial offer involved 5.25 million shares, with lead underwriters including Goldman Sachs, JP Morgan, Barclays, Citigroup, Sony, Air France, Allianz, General Electric and Accenture.

Proceeds from the IPO amounted to around $94.5m, which the company will use to continue international expansion and potential future acquisitions. Talend recently opened a new R&D centre in Nantes, dedicated to big data and machine learning.

The company had a $22m net loss in 2015, in spite of posting $76m in revenue – a 21% increase on its 2014 sales.

BPI France, which invested €12.4m in the group in 2013 and held 6.9% of the capital prior to the IPO, announced it had reinvested in the company as part of the transaction.

Prior to the IPO, the group's capital was distributed in the following way among existing shareholders: Silver Lake Semeru held 25.4%; Idinvest Partners 20.1%; Balderton Capital owned 20%; Galileo Partners 8.2%. All shareholders have diluted their stakes as part of the transaction. 

Previous funding
In June 2006, Galileo Partners took a minority equity stake by investing €2.1m in Talend. The GP reinvested the following year, committing an extra €3.82m alongside Idinvest, with whom it invested a majority stake in the company.

In February 2009, Balderton Capital led a $12m third round of financing for Talend alongside previous investor Idinvest. Balderton provided $9m while Idinvest provided the balance.

In April 2010, Talend completed a $8m series-D financing round with contributions from existing investors Balderton, Idinvest and Galileo. A few months later, Silver Lake Sumeru led a further $34m round of expansion, with contributions from Balderton Capital and Idinvest.

Finally, in December 2013, Iris Capital and BPI France took a minority stake in the group and led a $40m funding round alongside existing investors Silver Lake Sumeru, Balderton and Idinvest.

The French-American tech startup has to date received a total funding in excess of $101m.

Company
Talend is a software vendor specialised in big data integration. The company provides big data, cloud, data integration, data management, data quality, data preparation and enterprise application integration software and services.

Founded by Bertrand Diard and Fabrice Bonan in 2005, the company used to be based in Suresnes, right outside Paris. It is now headquartered in Redwood City, California, with additional offices in North America, Europe and Asia, and an international network of technical and service partners.

Talend reportedly has more than 1,300 customers, which includes big corporations such as General Electric, AOL, Citi, GE Healthcare, Groupon, Lenovo, Orange, Sky, and Sony. It posted revenues of $76m for 2015, up from $62.6m the year before.

People
BPI France – Thierry Sommelet (head of mid-cap/large cap); Maxence Kasper (investment director); Hervé Coindreau (legal advice on investments).

Advisers
Company – Goldman Sachs (corporate finance); JP Morgan Securities (corporate finance); Barclays Capital (corporate finance); Citigroup William Blair & Co (corporate finance).  

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• Topics
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• Iris Capital
• BPI France
• Silver Lake - London
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• IDInvest Partners (AGF Private Equity)
• Galileo Partners