Consulting Firm, a Milken Investment, Plans IPO

Nextera Enterprises Inc., a consulting firm controlled by former junk-bond king Michael Milken’s and Lawrence Ellison’s Knowledge Universe, has filed for an initial public offering that could raise as much as $87 million.

Founded in February 1997, Nextera has grown rapidly through acquisitions. The firm had pro forma combined 1997 revenue of $76.5 million, though it lost $7.4 million, according to its IPO filing with the Securities and Exchange Commission. The filing estimated the worldwide market for management consulting in 1997 at $46.3 billion.

Nextera, based in Lexington, Mass., said it plans to continue growing by buying independent consulting firms. Publicly traded shares would give the company another form of currency with which to make acquisitions as well as another way to attract and pay staff in a competitive market for employees, the filing said.

Nextera didn’t disclose how many Class A common shares it will offer in the IPO and how much it hopes the shares to bring. The $87 million estimated top value for the offering was provided only to calculate an SEC filing fee and includes room for extra shares, called an over-allotment, in case the offering is oversubscribed.

A company spokeswoman declined comment.

Knowledge Universe, through its ownership of Class B shares, would retain majority voting control of Nextera after it goes public.

Burlingame, Calif.-based Knowledge Universe is owned by Ellison, chairman and chief executive of software giant Oracle Corp., as well as brothers Michael and Lowell Milken.

Donaldson, Lufkin & Jenrette Securities Corp. will underwrite the stock sale with BancBoston Robertson Stephens Inc., BT Alex. Brown and NationsBanc Montgomery Securities.