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IT Consultant And Services Provider SharedLabs Files For $32M-plus IPO

Joseph F. Kovar

SharedLabs, a large business analytics solution provider, Friday filed for an initial public offering the company hopes will raise almost $32.5 million.

The Jacksonville, Fla.-based solution provider plans to list on the Nasdaq Stock Market under the symbol "SHLB," according to the company's S-1 filing.

SharedLabs focuses its services on what it termed in its S-1 filing as "next-generation technologies" including cloud hosting, big data analytics, artificial intelligence, blockchain, and IoT. The company offers professional services, project management, managed services, maintenance, and support.

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The net proceeds from the IPO will be used for working capital purposes, to finance expansion of the business including potential acquisitions, and to hire new personnel. There are currently no agreements in place to with potential acquisition candidates, the company said.

SharedLabs did not respond to a CRN request for further information by press time.

SharedLabs addresses a U.S. market it said could grow from $963 billion in 2016 to $1.16 trillion in 2020, citing a March 2017 report published by The Business Research Company.

For the year ended December 31, 2017, SharedLabs and its subsidiaries reported net revenue of $36.23 million, and posted a net loss of $1.80 million. As of May 15, the company said it had approximately 550 employees.

Since its founding in 2016, SharedLabs has made two strategic acquisitions. The first is iTech U.S., a South Burlington, Vermont-based provider of IT consulting, IT staffing, and customer software services, along with data warehouse and mobile computing resources. iTech brought with it a subsidiary, SmartWorks, an Edison, N.J.-based provider of IT consulting, software development, mobile development, and data services. iTech also has a large presence in India.

The second, ExoIS, was a San Jose, Calif.-based provider of information security, compliance, and IT advisory and support services.

SharedLabs focuses on five primary solution areas, according to its S-1 filing.

The first, software and applications, includes custom software development, maintenance, and management, as well as consulting services at every stage of a project. Software and applications accounts for 54 percent of its revenue.

The second, cloud services, includes data processing and hosting services, data management, and disaster recovery. SharedLabs offers infrastructure-as-a-service with hosted hardware, software, servers, storage, and other infrastructure components; platform-as-a-service cloud-based solutions; and software-as-a-service. It accounts for 8 percent of its revenue.

The third, web and digital services, which accounts for about 3 percent of its revenue, includes enterprise-level website design and development.

The fourth is data sciences services from exploratory assessments to complete analytics infrastructure deployment with capabilities in business intelligence, data analytics, data warehousing, and big data. It accounts for about 35 percent of revenue.

The fifth, blockchain development services over decentralized infrastructure, includes such capabilities as blockchain security, smart contracts, Ethereum, bitcoin, and Linux's opensource Hyperledger blockchain tools. It accounts for less than 1 percent of revenue.

On an industry bases, about 18.2 percent of revenue comes from banking and financing, 14.4 percent from government, and 14.0 percent from health and medical.

SharedLabs counts as competitors such offshore IT outsourcing firms as Cognizant Technology Solutions, HCL Technologies, Infosys Technologies, and other India-based companies, according to the S-1 filing.

The company also says it competes with such consulting and systems companies as Accenture, Cap Gemini, DXC Technology, Deloitte Consulting, Hewlett Packard Enterprise, IBM Global Services Consulting, and Sapient.

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