Compuware To Take Covisint Public
Detroit-based Compuware Corporation has announced the terms for taking their Covisint LLC (logo above) business public. Compuware is expecting to raise around $64 million by offering around 6.4 million shares for between $9 and $11 per share.
Covisint is a technology company that was established in 2000 by several companies including General Motors, Ford, and DaimlerChrysler. Compuware Corporation acquired Covisint in February 2004. Covisint will be listed on the Nasdaq exchange under the symbol COVS.
Covisint generated around $94 million in revenues for the 12 months ended June 30th, according to CrainsDetroit.com. Compuware will own 30 million shares of Covisint, which represents an 82.4% ownership. Based on the $10 mid-point price range, Compuware would have a market share of $365 million. Compuware shareholders will own around $300 million.