Bloomberg News

ServiceNow Plans to Make Deals to Fuel Global Growth

July 12, 2012

ServiceNow Inc. (NOW:US) Chief Executive Officer Frank Slootman said he may use some of the funds raised in an initial public offering last month for acquisitions to expand in Asia and Latin America.

“Professional services companies could really help expand the capacity of our market,” Slootman said in a telephone interview today. “The other area is system-management technology.”

ServiceNow provides software and services to help companies manage human resources and financial information over the Internet, using cloud computing. The stock (NOW:US) surged 37 percent on its debut trading day on June 29 after pricing above the planned range. ServiceNow’s initial public offering raised $241.1 million, including an overallotment exercised by the underwriters.

Slootman said the number of ServiceNow employees has increased to about 900 from fewer than 300 when he joined the company last year. He said he expects to hire more employees this year without specifying a total number.

“We’re constrained by talent,” Slootman said. “We’re not constrained by resources. It’s a very tight labor pool out there.”

Slootman also said the company plans to expand its market share in the public sector by providing services to the U.S. Department of Defense.

“We see the public sector as a big area for growth,” he said.

Shares of the San Diego-based company increased 1.5 percent to $24.08 at the close in New York and have gained 34 percent since the IPO.

To contact the reporter on this story: Kathleen Chaykowski in New York at kchaykowski@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


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Companies Mentioned

  • NOW
    (ServiceNow Inc)
    • $57.02 USD
    • -0.48
    • -0.84%
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