GlassHouse Updates IPO Plans
In a recent filing, Framingham-based GlassHouse Technologies Inc. provided the U.S. Securities and Exchange Commission with updated financial data and additional details on what it hopes to do with proceeds from an initial public offering, including paying off $30 million in debt and buying a Dutch technology firm.
GlassHouse nixed IPO attempts in 2007 and 2008, but made a new filing with the SEC for an IPO in January.
GlassHouse said in an amendment to its January IPO registration that it has made an initial offer to acquire the unnamed Dutch firm for $10.2 million in cash that would come from the IPO proceeds, plus 1.6 million shares of GlassHouse common stock.
It filed the amendment late last week.
The most recent filing does not include an expected amount that could be raised from an IPO, but the initial filing in January noted the company hoped to collect $75 million.
GlassHouse also notes in the filing that it intends to use proceeds to pay off a $32.5 million loan from Dell Product LP. The company is hoping to use proceeds to pay Dell about $30 million by a March 2011 deadline. As of March, the company said it had $49.4 million in outstanding debt.
GlassHouse is an information technology consulting firm with more than 500 employees. It has steadily increased its revenue since 2005, but continues to lose money annually.
Revenues have grown from $45.6 million in 2005 to $89 million in 2009. In 2005 the company lost $21.4 million for the year, while in 2009 the company lost $7.9 million.
In the first quarter of this year, the company posted $22.9 million in revenues, but lost $8.8 million. That compares to a $2.3 million loss on $22.1 million in revenue during the first quarter of 2009.
Michael Refolo, a partner at the Worcester law firm Mirick O'Connell and practice leader of the firm's business group, said it's not uncommon for companies to amend IPO filings months after the fact.
"There is a lot that goes on to finally get to the finish line with an IPO," he said. "It's quite a process."
He said the government reviews all initial filings and can request additional information from the company. Meanwhile, as the company continues to operate it may be required to update its plans for how it will use the money raised from an IPO.
GlassHouse declined to comment for this story.
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