Justworks, which provides an outsourced payroll and human resources software platform to SMBs, withdrew its plans for an initial public offering on Wednesday. It had planned to raise $214 million by offering 7 million shares at a price range of $29 to $32, but postponed this past January. The company revived its IPO in March with a new blank filing, and most recently updated its prospectus just over two weeks ago.
Justworks is a cloud-based software platform that gives small and medium-sized businesses (SMBs) access to benefits, payroll, human resources, and compliance support. The company employs a strategic M&A approach to deliver additional value to its target market, and in October 2020 acquired cloud-based time and attendance solution Boomr to serve more diverse types of small businesses, as well as deepen its portfolio of timecard and payroll features. As of May 31, 2022, Justworks had more than 9,000 customers across all 50 US states representing over 160,000 worksite employees.
The New York, NY-based company was founded in 2012 and booked $1.3 billion in revenue for the 12 months ended February 28, 2022. It had planned to list on the Nasdaq under the symbol JW. Goldman Sachs, J.P. Morgan, BofA Securities, Baird, Piper Sandler, and Raymond James were set to be the joint bookrunners on the deal.
