Initiate Pulls Planned IPO

HDM Breaking News, June 27, 2008

Initiate Systems Inc., which sells identity and data management software, has withdrawn its plans to conduct an initial public offering of stock it hoped would raise $75 million.

The Chicago-based company last November filed a registration statement to start the IPO process. In a letter to the Securities and Exchange Commission withdrawing the registration, the vendor stated, “The terms currently obtainable in the public marketplace are not sufficiently attractive to the registrant to warrant proceeding with the initial public offering.”

Instead, Initiate Systems on June 26 closed a $26 million private financing round. Washington-based Paladin Capital Group led the round. Other participants included existing investors Sigma Partners, Apex Venture Partners and First Analysis Group; and new investors Dunrath Capital, EMC Corp. and Informatica Corp.

More information is available at initiatesystems.com.

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