initial public offerings (IPOs) trading on American exchanges

Saturday, February 1, 2014

Paylocity files $115 million public offering

Paylocity Holding Corp., an Arlington Heights, Illinois company that makes payroll-processing software, plans to raise up to $115 million in a public offering.

Founded in 1997, Paylocity has nearly doubled revenue in the past three years.

It booked $77.3 million in revenue and $617,000 in profit in 2013. A year earlier, the company earned $1.7 million on $55.1 million in sales. Expenses rose sharply last year as the company added customers and invested heavily in research and development. It processed $30 billion in payroll in 2013.

Paylocity's primary customers are companies with less than 1,000 employees.

The company's prospectus, filed in secret under new securities rules, was made public late yesterday.

Paylocity is run by Steven Beauchamp, 42, who joined the company in 2007 from Paychex Inc. Founder Steven Sarowitz, 48, is chairman. He cashed out $22 million in 2012 in a sale to Chicago-based investment fund Adams Street Partners.

Underwriters include Deutsche Bank, Bank of America Merrill Lynch and Chicago-based William Blair.

Human-resources software is a hot area. Workday Inc. went public in 2012, enjoying one of the strongest tech IPOs at the time.

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