![]() “While SAS has had consistent and regimented practices in these areas since the beginning, the requirements of private companies differ from those of public companies. “There are many requirements and reporting standards that accompany IPO-readiness, some of which require up to three years of adoption and compliance,” Heath tells Datanami. ![]() Indeed, SAS previously had plans to go public back in 1999, but nixed them when the dot-com bubble burst.Īccording to SAS’s Heath, the time is needed to get SAS’s books in line. ![]() Why wait at least two-and-a-half years for an IPO? A lot can change over that period of time. But Schabenberger’s departure earlier this year signaled that wasn’t to be.īut the final question remains a puzzle. Goodnight, who is 78 years old, appeared to be grooming COO, CTO, and EVP Oliver Schabenberger to take the helm. It seems clear that something is afoot in Cary, and the future of SAS will look different than it has in the past. After the news broke, Goodnight and Sall reportedly had a change of heart and left the negotiating table, as we reported. The deal for SAS, which has 12,000 employees and had about $3 billion in revenues in 2020, reportedly was in the $15-billion-to-$20-billion range. The Wall Street Journal, citing unnamed sources, reported July 12 that Goodnight and Sall were in talks to sell SAS to the Silicon Valley tech company. This could end up being the ultimate perk to being a SAS employee, not to mention helping with attracting new talent.Īnother clue to the timing can be found from the first unexpected event that SAS was involved with earlier this month: the possible acquisition by Broadcom. If the company goes public, SAS would be able to grant stock options to its employees. Which brings us back to the question: Why an IPO now (or in 2024, anyway)? Goodnight owns two-thirds of SAS, while co-founder John Sall owns one-third, SAS Corporate PR Manager Shannon Heath confirmed to the Raleigh News & Observer. A Stanford professor estimated the company saves upwards of $80 million per year from having to replace departing workers, so it turns out this “employee-first” approach is good for business, too. SAS’s approach is so unique that it’s been taught in management seminars at Stanford University. Goodnight takes care of his workers, which is why SAS’s annual turnover historically has been in the 3% to 5% range, much lower than the software industry as a whole, according to a 60 Minutes story from 2011 called “Working the Good Life.”. Google reportedly modeled its employee-friendly approach on SAS, which is saying something. From the 35-hour work weeks to the free childcare and first-class amenities at its sprawling campus, it’s no wonder that SAS has landed on Fortune magazine’s “Best Company to Work For” list since it started the list in 1997. SAS has earned a reputation as a great place to work, and we’re not just talking beanbag chairs and ping-pong tables. According to Goodnight’s statement, the company wants to “open up new opportunities for SAS employees, customers, partners and our community to participate in our success, ensuring the brightest possible future for all of us.” We got a little more insight from Jim Goodnight, who has been the company’s CEO for its entire 45-year existence. It already achieved “financial strength, brand equity, and market leadership” many, many years ago. In its announcement, the Cary, North Carolina, analytics giant stated that it “has achieved the financial strength, brand equity, and market leadership to make this move.”Ĭonsidering that the company is already recognized as an undisputed leader in the analytics field, has amassed billions of dollars in profit for its owners, managed to commit to a $1-billion investment in AI in 2019, and was named the largest privately held software company in the world– over 20 years ago–that statement leaves the reader wanting. But the announcement led to new questions about the future of the company, some of which remain unanswered. SAS provided some insight into its decision to go public in the press release it issued today. The company has penciled in 2024 as the year it will go public–just a hair under 900 days from now. SAS surprised the analytics community for the second time in a month this morning when it announced plans for an initial public offering (IPO) of stock.
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