Follow us:

Brier Dudley's blog

Brier Dudley offers a critical look at technology and business issues affecting the Northwest.

January 22, 2010 at 12:44 PM

Motricity files for $250 million IPO

The Bellevue mobile software and services developer today filed for a $250 million IPO today.

Motricity’s already working with the top U.S. wireless phone companies and has a presence in Europe and Asia. It’s planning further international growth, including expansions in Southeast Asia, India and Latin America, “applying our expertise gained from the U.S. market and fully leveraging the capabilities and scale of the mCore platform,” it said in the prospectus.

Proceeds of the offering could also be used for acquisitions. The company dramatically grew in 2007 when it acquired the mobile content business of InfoSpace for $135 million. That put the bulk of the company in Bellevue, where it moved its headquarters from North Carolina in 2008.

The company said it’s planning to “gain additional scale and technology through opportunistic acquisitions that expand our total market opportunity, provide complementary technologies and solutions, and aid our international expansion efforts.”

Outside investors who have funded the company own more than half the current shares, including Carl Icahn, who holds 21 percent and Advanced Equities, which holds 26 percent. New Enterprise Associates have 8 percent and Technology Crossover Ventures has 6 percent.

Chief Executive Officer Ryan K. Wuerch has 22,685,231, or 4.98% of the total.

Also disclosed in the prospectus are details of the company’s rapid growth in recent years. Managing this expansion is one of the risk factors listed:

Our revenue from continued operations grew from $1.9 million

during the year ended December 31, 2004 to $103.2 million during the year ended December 31, 2008. We also increased the number of our fulltime

employees from 88 at December 31, 2004 to 338 at December 31, 2008.

An overview of the business in its prospectus:

Our mCore platform provides mobile subscribers with access to over 30 million unique pieces of third-party content or applications that

we optimize and deliver to over 2,000 different mobile phone models, ranging from entry level feature phones to smartphones. We have access

to more than 200 million mobile subscribers through our customers, and we currently provide mobile data services to over 30 million of these

subscribers monthly. Our operations are predominantly based in the U.S., with international operations in the United Kingdom, the Netherlands

and Singapore. Our customers include the top five wireless carriers in the U.S.: Verizon Wireless, AT&T, Sprint, T-Mobile USA and TracFone

Wireless. To date, over $3 billion in revenue has been generated by our customers through the use of our mobile data services platform. For the

twelve months ended September 30, 2009, we generated revenue of $117.1 million.

Comments | Topics: IPO, motricity

COMMENTS

No personal attacks or insults, no hate speech, no profanity. Please keep the conversation civil and help us moderate this thread by reporting any abuse. See our Commenting FAQ.



The opinions expressed in reader comments are those of the author only, and do not reflect the opinions of The Seattle Times.


The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►