Elliott Management backed Coveo Solutions files for IPO – updated

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By CPE News

CPE News (11/03/2021) – Coveo Solutions Inc. has filed a preliminary prospectus for a proposed initial public offering (IPO) of subordinate voting shares with terms of the offering to be determined.

Coveo Solutions is principally backed by Elliott Investment Management L.P., Fonds de solidarité FTQ, Investissement Québec (IQ), Al-Rayyan Holding LLC, and OMERS Growth Equity (OGE).

Al-Rayyan Holding LLC is a wholly owned subsidiary of Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar. OGE is a wholly owned subsidiary of OMERS Administration Corporation, the administrator of the Ontario Municipal Employees Retirement System Pension Plans (OMERS).

Immediately prior to closing, Coveo will enter into a nomination rights agreement with Louis Têtu, Laurent Simoneau, Elliott, IQ, and Fonds de solidarité and a registration rights agreement with Têtu, Simoneau, Elliott, IQ, Fonds de solidarité, OGE, and Al-Rayyan Holding.

Têtu and Simoneau will each be entitled to designate one member of the board, as long as each holds Multiple Voting Shares (including any Subordinate Voting Shares issued pursuant to the conversion thereof) representing at least 66.67% of the number of Multiple Voting Shares each he holds upon completion of the offering. Failing that, they will lose their rights. For so long as Têtu is a director, Têtu shall be entitled to be the Chairman of the board.

Subject to shareholding thresholds, Elliott will be entitled to designate two members of the board while IQ, and Fonds de solidarité each will be entitled to designate one member each.

Led by Têtu and Simoneau, Coveo is a market-leading AI-powered relevance platform. The company aims to re-democratize business by bringing AI and relevance to organizations throughout the world, enabling them to deliver the cross-channel experiences that we believe people now expect in the new digital economy.

For the fiscal year ended March 31, 2021, Cover reported $64.9 million in revenues, $48.5 million in gross profit, $20.5 million in operating loss and $600 million in net loss (all financial figures in US dollars).

As of September 30, 2021, Coveo had over 625 employees.

EDIT: the net loss was US $600 million for the fiscal year ended March 31, 2021.

News Release

Coveo Solutions Inc. Files Preliminary Prospectus for its Initial Public Offering


MONTREAL/SAN FRANCISCO, November 3, 2021 — Coveo Solutions Inc. (“Coveo” or the “Company”) today announced that it has filed a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada (the “Preliminary Prospectus”) for a proposed initial public offering of subordinate voting shares (the “Offering”). The number and price of the subordinate voting shares to be sold have not yet been determined.

BMO Capital Markets, BofA Securities, RBC Capital Markets and UBS Investment Bank are acting as joint bookrunners for the Offering.

The Preliminary Prospectus contains important information relating to the Offering and is still subject to completion or amendment. The Preliminary Prospectus is available on SEDAR at www.sedar.com. There will not be any sale or any acceptance of an offer to buy the subordinate voting shares until a receipt for the final prospectus has been issued.

No securities regulatory authority has either approved or disapproved the contents of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful. The subordinate voting shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities law and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom.

About Coveo

We believe that relevance is critical to winning in the new digital experience economy. Coveo is a marketleading AI-powered relevance platform. We aim to enable our customers to deliver the relevant experiences that we believe people expect in the new digital economy. Our SaaS-native, multi-tenant platform injects search, recommendations, and personalization solutions into digital experiences. We provide solutions for ecommerce, service, website, and workplace applications. Our solutions are designed to provide tangible value to our customers by helping drive revenue growth, reduce customer support costs, increase customer satisfaction and website engagement, and improve employee proficiency and satisfaction.

Our AI powers relevant interactions for hundreds of the world’s most innovative brands and is supported by a large network of global system integrators and implementation partners.

Coveo is a trademark of Coveo Solutions Inc.

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