ZoomInfo Technologies Announces Launch of IPO

This week ZoomInfo Technologies Inc. announced the launch of its initial public offering of 44,500,000 shares of its Class A common stock. The initial public offering price is expected to be between $16 and $18 per share.

The company expects to grant the underwriters a 30-day option to purchase up to an additional 6,675,000 shares of its Class A common stock.

ZoomInfo, leading go-to-market intelligence platform for sales and marketing teams, has applied to list shares of its Class A common stock on the Nasdaq Global Select Market under the symbol “ZI.”

Proceeds from the offering will be used to redeem all outstanding Series A preferred units of ZoomInfo Holdings LLC, its indirect subsidiary following the initial public offering, for approximately $274 million, to repay all outstanding $370 million aggregate principal amount of its second lien term loans, to repay $35 million of outstanding borrowings under its first lien revolving credit facility, to purchase outstanding ZoomInfo OpCo equity interests from certain equity holders for approximately $43 million, to pay certain expenses related to this offering, and for general corporate purposes.

J.P. Morgan and Morgan Stanley are acting as the joint lead book-running managers for the offering.

ZoomInfo is known for its large database of business information, and it sells a subscription to access this to recruiters and sales and marketing personnel.

Most recently, the company reported $102.2 million in revenue with net losses of $5.9 million for the first quarter of 2020. Last year, the company had $293.3 million in revenue, with $78 million in losses, according to the company’s S-1.