Arik Hesseldahl

Recent Posts by Arik Hesseldahl

Rally Software to Float in IPO Today

rally_logo-featureShares of Rally Software, a company that makes agile software development tools, will be floating today on the New York Stock Exchange. The company will be selling six million shares, priced at about $14 a share.

Rally had raised a fair amount of venture capital funding, including a $20 million round led by Meritech Capital Partners, and $16 million from Greylock Partners before that. Last year it acquired a partner called Agile Advantage.

Agile software development is a way of working that allows for relatively short cycles, and improving on an application as you go. The idea is to keep the development work as close to business objectives as possible. Rally specializes in building cloud-based tools for managing development cycles and collaboration.

Rally’s customers include Oracle, eBay, BMC Software and Intel in the tech space; Disney and McGraw-Hill in the media segment; and McKesson, a big name in the health care world. The company’s S-1 filing with the U.S. Securities and Exchange Commission says it has nearly 169,000 paid seats in use. It reported sales of $57 million in the year ended Jan. 31, and a net loss of $10.8 million.

Deutsche Bank and Piper Jaffray are acting as lead book-running managers for the offering. Needham & Co., JMP Securities, and William Blair & Co. are acting as co-managers.

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Another gadget you don’t really need. Will not work once you get it home. New model out in 4 weeks. Battery life is too short to be of any use.

— From the fact sheet for a fake product entitled Useless Plasticbox 1.2 (an actual empty plastic box) placed in L.A.-area Best Buy stores by an artist called Plastic Jesus