WalkMe prices Nasdaq IPO at $2.6b valuation

WalkMe CEO Dan Adika Photo: PR
WalkMe CEO Dan Adika Photo: PR

The Israeli digital adoption SaaS company has raised $287 million and will begin trading on Nasdaq today.

Israeli digital adoption SaaS company WalkMe today reports that it has priced its IPO on Nasdaq at the upper end of the price range cited in the terms it set last week. The company has raised $287 million at $31 per share, giving a nearly $2.6 billion valuation and will begin trading today using the WKME ticker.

The amount raised will increase by $43 million, if the underwriters fully exercise their options. Morgan Stanley, Goldman Sachs and Citigroup are acting as lead book-running managers for the offering. Wells Fargo Securities, Barclays and BMO Capital Markets are acting as joint book-runners and JMP Securities, KeyBanc Capital Markets and Needham & Company are acting as co-managers for the offering.

WalkMe plans using the funds raised for general business purposes, working capital, operational and capital expenses and perhaps acquisitions of companies or technologies.

WalkMe's last financing round in 2019 was completed at a valuation of $1.9 billion. The company has developed an enterprise guidance and engagement platform that enables website owners and software developers to create interactive on-screen guidance sequences to help users complete complex tasks.

WalkMe was founded in 2011 by CEO Dan Adika, president Rephael Sweary and Eyal Cohen, who has since left the company. In 2016, WalkMe was chosen as "Globes" most promising startup of the year.

In the first quarter of 2021, WalkMe's revenue grew 29.8% from the corresponding quarter of 2020 to $38.5 million, while net loss widened 9.2% to $13.4 million. 2020 revenue was $130 million, up 37.5% from 2019 and net loss was $45 million, compared with $50.1 million in 2019. WalkMe's customers include LinkedIn, CitiGroup, Chevron, and AstraZeneca.

The company has raised $308 million from investors including Insight Partners, Greenspring Associates, Vitruvian Partners, Scale Ventures, Mangrove, and Gemini. Insight Partners is WalkMe's largest shareholder with a 28.4% stake worth $727 million. Greenspring Associates has a 12.5% stake worth $321 million, Scale Venture Partners has a 11.4% stake worth $294 million, Gemini has a 9.4% stake worth $240 million, and Mangrove has a 7.6% stake worth $195 million. The founders Adika and Sweary each have around 2.5% of the company.

WalkMe is the fifth IPO of an Israeli tech company on Wall Street this year worth more than $1 billion, after gaming company Playtika (Nasdaq: PLTK), web behavior and traffic analytics company SimilarWeb (NYSE: SMWB), international e-commerce platform Global-E (Nasdaq: GLBE) and last week work operating system company monday.com (Nasdaq: MNDY).

Published by Globes, Israel business news - en.globes.co.il - on June 16, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

WalkMe CEO Dan Adika Photo: PR
WalkMe CEO Dan Adika Photo: PR
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