IDS Group, Inc. submitted an IPO filing on Thursday. The total proposed maximum aggregate amount in securities is listed as $86,250,000. They have applied to trade on the Nasdaq Global Market under the symbol “IDSI”. The underwriting group is listed as Thomas Weisel Partners LLC, Piper Jaffray, Needham & Company, LLC, and Robert W. Baird & Co.
IDS Group provides financial institutions and equipment manufactures software and services that improve the asset finance origination process. The software manages the accounting, administration, and compliance requirements associated with asset finance portfolios. Currently, they provide their services to 250 customers globally for equipment leasing companies, equipment finance providers, banks, and lessors. Some of their key products include Rapport, InfoLease, and ProFinia. They generated $47.7 million and $38.5 million for 2006 and nine months ended September 30, 2007, respectively.
IDS believes that the asset finance origination and portfolio management solutions market is very large and growing on a global scale. IDS lists key strengths in this market including: leading market position and strong, established brand; deep domain expertise and industry experience; strong customer loyalty; flexible pricing model; broad and integrated suite of solutions; and continuous and substantial research and development capability and investment. Potential risk factors include dependence on the asset finance industry, unpredictable sales cycle for software and services, uneven quarterly revenue and profitability, and a decrease in demand and potential customers due to consolidation in the financial services industry.
February 15, 2008