DJ IAC Raises an Additional $300 Million for Vimeo, Plans IPO in Early Second Quarter -- Barrons.com
By Eric J. Savitz
IAC/InterActiveCorp has raised an additional $300 million in primary equity for its video software company Vimeo, the company said in an announcement Monday afternoon. The financing follows a $150 million equity raise in November.
IAC (ticker: IAC) expects to spin out Vimeo as a public company early in the second quarter of 2021.
The new capital comes from T. Rowe Price Group and Oberndorf Enterprises. IAC said the new investment comes in two tranches, $200 million at a $5.2 billion pre-money valuation and $100 million at a $5.7 billion pre-money valuation. IAC said the round will provide "additional cash to accelerate its investments in growth, innovation and talent."
The previous round was provided by Thrive Capital and GIC, the government of Singapore's investment arm, at a valuation of $2.75 billion.
IAC said Vimeo "continues to see record growth" for its cloud-based video software from companies like Amazon.com (AMZN), Starbucks (SBUX), Deloitte, Zendesk (ZEN), Rite Aid (RAD) and Siemens (SIE.Germany). In December, Vimeo saw 57% revenue growth from a year earlier, the strongest month of the year.
"As the world embraces video like never before, Vimeo is in an incredibly strong position to help more businesses take advantage of this powerful medium,"CEO Anjali Sud said. "We have built an industry-leading solution that the market needs, and we intend to move swiftly to bring our professional-quality tools to millions more users."
IAC stock has rallied 55% since IAC announced the Vimeo spinoff in November.
Write to Eric J. Savitz at eric.savitz@barrons.com
(END) Dow Jones Newswires
January 25, 2021 16:05 ET (21:05 GMT)
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