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Nexgenix Plans $57.5-Million Stock Offering

March 28, 2000|From Staff and Wire Reports

Nexgenix Inc., an Irvine company that helps clients develop Web sites and retain online visitors to those sites, will seek to raise as much as $57.5 million through an initial public offering.

The Irvine company filed with the Securities and Exchange Commission to sell common stock. It will disclose the number of shares to be sold and their price in a later filing.

Among Nexgenix's board members are three prominent names in Orange County technology circles--David Dukes, former vice chairman of distributor Ingram Micro Inc.; Safi U. Qureshey, co-founder of AST Research Inc.; and John Walecka, founding partner of Redpoint Ventures.

Walecka holds a 21.3% stake in Nexgenix and Dukes and Qureshey each have 1.7% of the stock.

Founded in 1990, Nexgenix is an Internet consulting firm with a twist. It not only helps companies develop Web sites but also assists them with marketing to online customers once the sites are up and running.

At the end of last year, the company had 22 offices in states including California, Florida, Georgia, New York and Texas, as well as an international office in India. Its clients include Alcatel Internetworking Division and CBS SportsLine, the filing said.

Revenue rose to $20.7 million during the six months that ended Dec. 31, up from $16.6 million for the same period in 1998. Nexgenix recorded a net loss of $3.65 million for the last six months of 1999; it posted net income of $334,000 for the same period a year earlier.

Nexgenix plans to use the proceeds from the offering for general corporate purposes, including debt repayment, working capital and capital improvements.

Underwriters for the stock sale will include Credit Suisse First Boston, Lehman Brothers and Robertson Stephens. The company will seek to have its shares trade on the Nasdaq Stock Market under the symbol NXGN.

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