WageWorks Announces Pricing of Its Follow-On Offering


WageWorks Announces Pricing of Its Follow-On Offering

SAN MATEO, Calif.--(BUSINESS WIRE)-- WageWorks, Inc. (NYSE: WAGE) today announced the pricing of its follow-on public offering of 6,000,000 shares of its common stock at a price to the public of $17.50 per share. WageWorks is selling 1,000,000 shares of common stock in this offering, and selling stockholders are selling 5,000,000 shares of common stock in this offering, including 338,566 shares of common stock which will be issued upon the exercise of outstanding warrants. The underwriters have an option to purchase a maximum of 900,000 additional shares, including 31,313 shares of common stock which will be issued upon the exercise of outstanding warrants, from the selling stockholders identified in the prospectus for this offering to cover overallotments, if any.

WageWorks will not receive any proceeds from the sale of shares to be offered by the selling stockholders other than $1,550,633 representing the exercise price of certain warrants to be exercised in connection with the follow-on offering. The principal purposes of this offering are to facilitate an orderly distribution of shares for the selling stockholders, to increase the public float and to raise additional capital. The proceeds of the primary portion of the offering will be used to provide additional working capital for WageWorks and general corporate purposes, including further expansion of sales and marketing efforts, continued investments in technology and development and for capital expenditures.

William Blair & Company, L.L.C. and Stifel Nicolaus & Company, Incorporated are serving as joint book-running managers for the offering, with JMP Securities LLC and Needham & Company, LLC acting as co-managers.

WageWorks also announced that William Blair & Company, L.L.C. and Stifel, Nicolaus & Company, Incorporated, as joint book-running managers of the offering, are releasing a lock-up restriction with respect to 1,150,000 shares of WageWorks' common stock held by certain WageWorks stockholders, including 1,025,267 shares held by affiliates of certain of our directors, who are expected to sell shares in the offering. The release will take effect concurrently with the offering.

A registration statement relating to shares of the common stock of WageWorks has been declared effective by the Securities and Exchange Commission. This offering is being made by WageWorks and the selling stockholders only by means of a written prospectus forming part of the effective registration statement. A copy of the final prospectus for the offering may be obtained from William Blair & Company, L.L.C. at 222 West Adams Street, Attention: Prospectus Department, Chicago, IL 60606, phone number (800) 621-0687, or from Stifel Nicolaus & Company, Incorporated at One Montgomery Street, Suite 3700, San Francisco, California 94104, phone number (415) 364-2720.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Investor Relations Contact:
Staci Mortenson, 650-577-6300
Media Contact:
WageWorks, Inc.
Kimberly Jackson, 650-577-5209

KEYWORDS: United States North America California