Compuware's Covisint Files IPO Of Up To $100M
DETROIT (WWJ) -- Compuware Corp. (Nasdaq:CPWR) said Wednesday that it plans to sell up to $100 million worth of stock in its Covisint subsidiary.
Compuware says it filed the Form S-1 registration statement with the Securities and Exchange Commission, although the number of shares to be sold and the price range for the proposed offering have yet to be determined.
Covisint provides secure communications and collaboration technology to companies that need tight security, from health care to finance to the auto industry.
Covisint says it will use the proceeds to develop new products, hire more staff, pursue acquisitions, and for general corporate uses.
Compuware says it eventually plans to sell the rest of the stock in Covisint for the benefit of its existing shareholders. Compuware made that pledge earlier this year to fend off demands to sell the company.
Credit Suisse Securities (USA) LLC will act as manager for the offering, with Pacific Crest Securities LLC joint manager. Allen & Co. LLC will act as co-manager.
When available, a copy of the preliminary prospectus may be obtained from Credit Suisse at its Prospectus Department, One Madison Avenue, New York, New York 10010, phone (800) 221-1037.
Covisint's shares are expected to be traded on the Nasdaq global stock market under the symbol COVS.
More at www.covisint.com.
Covisint was founded in 2000 by General Motors, Ford and Chrysler to act as an online collaboration center for automakers and auto suppliers. Covisint later expanded into health care, oil and gas, and other industries. Compuware acquired it in 2004. Compuware provides software and services that test, manage and help develop other software.
Compuware in January rejected an $11-a-share buyout bid from a New York investment fund, Elliott Management Corp. Compuware said the Elliott offer "significantly undervalues" the company.
Compuware stock closed Wednesday down 21 cents or 1.8 percent at $11.30. They rose a penny to $11.31 in after-hours trading.
