Freelancer founder turns down $430m offer and opts to go public
"It's way too early for me to put my feet up and sit by the beach," Mr Barrie, 40, said.
As foreshadowed last week, he has decided to turn down one of the largest acquisition offers the company has received to date - $US400 million ($430 million) by Japanese recruitment site Recruit Co - and instead list on the ASX by the end of the year.
KTM Capital will be the brokers and underwriters for the initial public offering.
The announcement of Freelancer's intention to list came on day one of Australia's first technology start-up festival, Startup Spring, which will see more than 100 events and activities held around Australia to celebrate and promote the local start-up community.
The Freelancer listing is likely to create a number of new Australian millionaires, with Mr Barrie saying he will open an employee share scheme. It will also make rich early investors in his company, including Australian technology entrepreneur Simon Clausen, who now lives in Switzerland and founded PC Tools, which was sold to Symantec for $US262 million.
It is understood Mr Barrie is eyeing a valuation close to $1 billion on the ASX, although he would not comment on this due to there being a blackout period before and after filing a prospectus for an IPO. The prospectus had yet to be filed, he said.
"It's the right time for the company to go out there and raise some money," Mr Barrie said.
He wanted the listing to pave the way for other technology companies "in whatever stage of their life cycle" to come to the ASX as a place to raise funds rather than all go overseas, "which is a traditional Australian venture capital model that I think is somewhat broken".
"We need to build the sector here and really build the industry up," he said. "To a certain extent I'm putting my money where my mouth is."
Freelancer claims to be the world's largest outsourcing marketplace, allowing users to post projects online, which freelancers then bid to carry out. More than 9 million users have signed up, with more than 4 million projects posted since the firm launched in 2009, its website says.
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Matt Barrie turned down multiple acquisition offers worth hundreds of millions of dollars, including a US$400 million (about AU$430 million) bid from Japanese recruitment site Recruit Co.
Barrie said it was too early to sell and that listing on the ASX would allow Freelancer to raise capital, grow the business, and help build a stronger local tech sector so more Australian startups can raise funds at home rather than going overseas.
Freelancer intends to list on the Australian Securities Exchange by the end of the year, with KTM Capital appointed as the brokers and underwriters for the initial public offering. A prospectus had not yet been filed at the time of the announcement.
Matt Barrie said he was eyeing a valuation close to $1 billion on the ASX, but he would not comment further because the company was subject to a blackout period before and after filing a prospectus.
Yes. Barrie plans to open an employee share scheme, and the listing is expected to create a number of new Australian millionaires. Early investors — for example Simon Clausen, founder of PC Tools (which was sold to Symantec for US$262 million) — stand to benefit from the public listing.
Freelancer brands itself as the world’s largest outsourcing marketplace, where users post projects online and freelancers bid to carry them out. According to the company, more than 9 million users have signed up and over 4 million projects have been posted since Freelancer launched in 2009.
The announcement of Freelancer’s intention to list came on day one of Startup Spring, Australia’s technology start‑up festival that hosts more than 100 events and activities around the country to promote the local startup community.
Barrie said he hopes the Freelancer listing will encourage other technology companies at all stages to use the ASX to raise funds rather than moving overseas, arguing that the traditional Australian venture capital model is somewhat broken and that local listings could help build the sector.
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