As it prepares to go private, ACTIVE Network, the cloud-based event registration specialist, has released its financial results for Q3 2013. Whilst it currently remains a publicly traded entity, ACTIVE notes the following Q3 2013 financial highlights:
- Total net revenue up 8% year on year to US$117.5 million
- Technology revenue +9% year on year; this constituted 89%, or US$104.4 million, of total net revenue
- Specifically, net registration revenue increased 9% to US$79.0 million; registrations grew 6% and revenue per registration was up 2%
- Marketing services revenue constituted 11%, or US$13.1 million, of total net revenue
- The company’s Q3 2013 net loss was US$5.3 million, compared to a net loss of US$6.0 million in the previous year period
- Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation), a non-GAAP financial measure, was US$16.4 million
Excluding charges related to transaction costs associated with ACTIVE Network entering into a definitive agreement to be acquired by Vista Equity Partners and management changes, adjusted EBITDA was US$19.5 million, up 27%.
“I am very pleased with our third quarter results,” said Jon Belmonte, Interim CEO of ACTIVE Network. “During the quarter, we entered into a definitive agreement to be acquired by Vista Equity Partners, which we believe will be a very positive event for stockholders and will help position us to further capitalize on the market opportunity.”
On 28 September 2013, ACTIVE Network entered into a definitive agreement to be acquired by affiliates of Vista Equity Partners (‘Vista’), a leading private equity firm focused on investments in software, data and technology-enabled businesses, in a transaction valued at approximately US$1.05 billion.
Pursuant to the agreement, Vista has commenced a tender offer to acquire all of the outstanding shares of ACTIVE Network’s common stock for US$14.50 per share, in cash, payable without interest and less any applicable withholding taxes.
Any shares not tendered in the offer will be acquired in a second-step merger at the same cash price as paid in the tender offer. The transaction is expected to close before the end of the fourth quarter of 2013. Upon the completion of the transaction, ACTIVE Network will become a privately held company.
