Dan Primack Sep 12
It's been IPO delay day
Three companies that were viewed as near-term IPO candidates have put their plans on hold due to management shakeups:
- Ancestry.com: CEO Tim Sullivan is stepping down after a decade-long run, as Axios was first to report this morning. He'll transition into a chairman role on October 1, with CFO and COO Howard Hochhauser taking over on an interim basis. The private equity backed company, which was valued at $2.6 billion when Silver Lake invested in early 2016, had filed confidential IPO papers but plans to hold off on a public S-1 until a new permanent CEO is found.
- SoFi: CEO Mike Cagney had hinted at an IPO in an August investor letter, discussing the company's search for a new CFO. Now Cagney is also leaving at year-end because "the combination of HR-related litigation and negative press have become a distraction from the company's core mission." That litigation includes Cagney as a defendant, and doesn't even involve the sexually explicit texts he sent to an EA (resulting in a $75k settlement). SoFi was most recently valued at $4 billion.
- Cabot Credit: The British debt collection firm, backed by J.C. Flowers, has delayed a planned £1 billion offering, after former Provident Financial CEO Peter Crook stepped down from its board of directors, according to Reuters.