Needham, Mass.—TechTarget confirmed late Wednesday that it will pursue an initial public offering in 2006.
The company hired investment bank UBS to explore the company’s valuation in the mergers and acquisitions market. In the process, TechTarget concluded that an initial public offering would provide more value to the company’s three key constituencies: customers, shareholders and employees.
“TechTarget has decided to continue on the path of growth as an independent company and to make the appropriate preparations that will enable it to explore a public offering in 2006,” the company said in a statement.
TechTarget also said it is restructuring its management team. Kevin Beam, who has led the company’s Storage, Security and Windows media groups will add the company’s four other media groups to his responsibilities: CIO Decisions, Networking, Application Development and Enterprise Applications.
In conjunction with this change, three VPs are leaving the company: Joe Levy, Paul Gillin and John Cox. Greg Strakosch remains CEO and Don Hawk remains president.
“It’ll give them currency for future acquisitions,” Reed Phillips, managing partner of media investment bank DeSilva & Phillips, said of an IPO for TechTarget. “But a lot depends on how they use the funds, whether they give them to shareholders or use them for growth.”
Some investment bankers speculated that TechTarget’s opting for an IPO indicated that it was unhappy with the valuation by the M&A market. —Sean Callahan and Matthew Schwartz