SAN FRANCISCO (Reuters) - The chief executive officer of DocuSign has resigned, according to an internal memo, signaling a leadership change for a well-funded tech company that is on the brink of an initial public offering.
Keith Krach, chairman and CEO of DocuSign, a San Francisco company that makes software to add legally compliant electronic signatures to documents, told employees in a memo the company would begin a search for his successor.
Krach cited DocuSign’s “incredible momentum” and valuation growth of more than 60 times during his tenure, according to the memo, which was sent to employees in the last day or two, as reasons for his departure.
“With the company on such solid footing, now is the perfect time to move forward with our succession plans,” Krach wrote.
Tech media site Re/code reported Krach’s resignation on Friday afternoon and posted the memo online. A person who works with Krach told Reuters the memo was authentic.
Krach became CEO four years ago and has been chairman for seven. Sources familiar with the company say Krach will continue to have a significant presence there. He will stay on as chairman for at least three more years.
He is also one of DocuSign’s largest individual shareholders.
Krach will remain CEO until a replacement is named. A search has begun, and the board is looking at both internal and external candidates.
The next logical step for the company is an IPO, according to the source who asked not to be named because the plans are confidential.
DocuSign, valued at $3 billion, aims to replace one of the final paper-and-pen aspects of business transactions: the signature. It is available in more than 40 languages and about 188 countries.
DocuSign recently closed a Series F funding round that exceeded $300 million and now has well over $500 million in financing.
Editing by Ken Wills