Thursday, November 1, 2007

News Analysis: Deltek IPO's at $18/share

Kudos to the Deltek team for their recent IPO. This public offering showcases how taking a company private can provide opportunities to regroup, reorganize, and recharge. What this means for Deltek:
  • New market growth opportunities. The $10M in proceeds from the IPO give Deltek the cash to build off of its base in the UK for International expansion. In addition, the vendor's strength in government contracting, professional services, and construction lends well to related industries such as IT services, architecture, accounting, and transportation services. Deltek can also take the opportunity to expand its partner network.
  • Visibility into the growing project based solutions market. Forrester estimates this market to be $6.5B by 2010. As work shifts from product to service orientation, solutions in this Project Based Solutions space gain prominence in the enterprise. Think of a Best Buy who's no longer selling a home theater system but the installation, delivery, and extended warranty. Expect the marketing to crank up from stalwarts such as Epicor, Oracle, Primavera, and SAP.
  • Debt repayment. As part of the repayment terms, the company will apply $42.9M to repay about a quarter of their debt and another $3.9M to selling shareholders who've exercised options. This should free the firm up for better growth prospects.
The bottom line for end users
Keep an eye on this space if your business revolves around projects. Vendor consolidation is sure to occur, but Deltek will be a major player in this space. Deltek's offerings cover both the .NET world and the J2EE world so platforms should not be an issue. Expect both Oracle and SAP to amp up the messaging if the Best of Breeds do really well.

(The personal contents in this blog do not reflect the opinions, ideas, thoughts, points of view, and any other potential attribution of my current, past, or future employers.)
Copyrighted 2007 by R Wang. All rights reserved

16 comments:

Linux Lover said...

Great to see a pure play project software company go public. The growth rate at Deltek is impressive and they have a defensible focus. The "old guard" is actually in a lot of trouble as the market has shifted to SaaS and open source. I like Deltek and Projity. Deltek has the accounting and domain expertise to win in the market over SAP and Oracle. Projity has SaaS and open source solutions that will win over Primavera and the others. OpenProj is free on the desktop for Linux, Unix, Mac or Windows. Project-ON-Demand is delivered as a SaaS application for $19.99/month. Those will both really hit the Microsoft Project and Primavera solutions. There are not many public stock plays here but Deltek looks good with 40% growth. Primavera looks clumsy with 13% growth. You can't go public with that

Anonymous said...

Oi, achei seu blog pelo google está bem interessante gostei desse post. Gostaria de falar sobre o CresceNet. O CresceNet é um provedor de internet discada que remunera seus usuários pelo tempo conectado. Exatamente isso que você leu, estão pagando para você conectar. O provedor paga 20 centavos por hora de conexão discada com ligação local para mais de 2100 cidades do Brasil. O CresceNet tem um acelerador de conexão, que deixa sua conexão até 10 vezes mais rápida. Quem utiliza banda larga pode lucrar também, basta se cadastrar no CresceNet e quando for dormir conectar por discada, é possível pagar a ADSL só com o dinheiro da discada. Nos horários de minuto único o gasto com telefone é mínimo e a remuneração do CresceNet generosa. Se você quiser linkar o Cresce.Net(www.provedorcrescenet.com) no seu blog eu ficaria agradecido, até mais e sucesso. If is possible add the CresceNet(www.provedorcrescenet.com) in your blogroll, I thank. Good bye friend.

Dream said...

Uncle Vernon’s face worked furiously. The idea of being taught consideration by a man who had just blasted away half his living room wall seemed to be causing him intense suffering. But Mr. Weasley’s wand was still in his hand, and Uncle Vernon’s tiny eyes darted to it once, before he said, very resentfully, “Good-bye, then.”
“See you,” said Harry, putting one foot forward into the green flames, which felt pleasantly like warm breath. At that moment, however, a horrible gagging sound erupted behind him, and Aunt Petunia started to scream.
Powerboat Training Courseshair loss extensions women

whatlivemom said...

Chris Brogan I recently spoke to Chris Brogan, who is a long time contact from when I started blogging back in 2006. Chris is the president of Human Business Works, a media and education company. He c...
Uebersetzungsbuero Frankfurtseksfilm

whatlivemom said...

I'd be curious to know how much your view of G+ for business has changed since that early webinar. How much did you get right then? How much has changed?
Nashville loftswholesale pet clothing

whatlivemom said...

See you at the Fiesta Bowl. Maybe we should do a meetup or something. Go Stanford!
legocoach hire prices

whatlivemom said...

that Tim Ferris is so annoying damn.. so full itself.. :E
mobile casinosAtlanta Search Engine Marketing

whatlivemom said...

Thanks...I'd heard something was announced today, but like you, have been too busy to read until now.
Boots UKdescarga musicas rock

whatlivemom said...

Bejeweled? That game that came out over ten years ago? The game that has hundreds of clones? Wow.
on hold messagesbaby bean bag

whatlivemom said...

Fiction that adds up, that suggests a 'logical consistency,' or an explanation of some kind, is surely second-rate fiction; for the truth of life is its mystery." ~ Joyce Carol Oates in The Journal of Joyce Carol Oates: 1973-1982
Travel to Galapagos islandsIsrael SII approval power supply cords

whatlivemom said...

Art, though, is never the voice of a country; it is an even more precious thing, the voice of the individual, doing its best to speak, not comfort of any sort, but truth. And the art that speaks it most unmistakably, most directly, most variously, most fully, is fiction; in particular, the novel." ~ Eudora Welty in On Writing
digital signatureholiday to antigua

whatlivemom said...

I attended a GREAT session entitled "Publicness" in Davos on Friday moderated by +Jeff Jarvis and +danah boyd who had some great insights on teen use of social media. I tried to summarize the best quotes below.
Arthritis Helpvaporizer

whatlivemom said...

Future Web is an opportunity for young entrepreneurs to discuss the months future web stories.
Beachbody CoachSober Living Homes Los Angeles

whatlivemom said...

Facebook will reportedly file for IPO later today, and it has the entire tech world buzzing. It will be the only thing people will talk about when
wholesale dressesariline to mumbai

whatlivemom said...

It doesn't come out till 2013 but I'm already excited about it and you can read more about it by clicking on the announcement below. Way to go Mitch!
Air Mass MeterOnline Car Insurance Guide

whatlivemom said...

You’re in the business of changing behavior, and here’s how to do it with these 3 simple tactics.

NAILbreast cancer treatment