Compuware Takes Next Step For Covisint Stock Sale
DETROIT — The Detroit-based software and IT services provider Compuware Corp. (Nasdaq: CPWR) said Friday it submitted a draft registration for a stock sale in its Covisint secure communication portal subsidiary.
Compuware said the draft registration was submitted “on a confidential basis,” meaning it’s not yet up for public view on the Web site of the U.S. Securities and Exchange Commission.
Compuware said the IPO would give Covisint more flexibility to pursue strategic opportunities and increase its visibility. Covisint specializes in secure, industry specific communication and collaboration, according to its Web site.
Compuware said it expects to conduct the IPO pending a review from the Securities and Exchange Commission and depending on market conditions.
In the company’s last fiscal year Covisint’s revenue grew 34 percent to $73.7 million. That was about 7 percent of Compuware’s total revenue of $1.01 billion. In the first half of its current fiscal year, Covisint reported $41.1 million in revenue, about 9 percent of Compuware’s revenue.
Compuware has long planned a public stock offering to recover some of the value in Covisint, whose growth has been driven in part by the increasing use of electronic medical records. Plans to sell part of Covisint’s stock to the public in 2007 were scuttled by the looming Great Recession.
The Associated Press contributed to this report.