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Pricing its shares above the top end of the range it previously targeted, data center provider Switch raised $513 million in its initial public offering Thursday. Its shares will start trading on the New York Stock Exchange Friday under the ticker symbol SWCH.
The Las Vegas-based data center provider sold its Class A stock at $17 per share (instead of the expected $14 to $16 per share) in what was the second-largest tech IPO so far this year, following Snap’s IPO in March, in which the social networking company raised $3.4 billion. The offering gives Switch a market value of $4.2 billion, according to Reuters.
Switch operates data centers in Las Vegas; outside of Reno, Nevada; and outside of Grand Rapids, Michigan. It’s also building a data center campus in the Atlanta market and has data center joint ventures in Italy and Thailand.
Switch’s premier customers include eBay (its largest) and Amazon, among about 800 others.
eBay and its affiliates accounted for 13 percent of Switch’s 2016 revenue, which was $318.4 million.
The company’s 2013 revenue was $166.8 million, meaning its compound annual growth rate has been 24 percent over the last three years.
Switch reported $31.4 million in net income for 2016 and $73.5 million in 2015. Its 2015 revenue was $265.9 million.

 

As the web hosting and cloud computing markets mature, the mix of companies achieving success in raising venture capital has changed. The industry has attracted well over a billion dollars in investment so far in 2017. However, most successful funding rounds have been focused on software rather than infrastructure.
With Dropbox said to be preparing for an IPO, motivation to find the next internet service unicorn remains high.
At the same time, funds like the initiative launched in May by Cisco, Emery and Texas Tech to support enterprise software and cloud computing companies in Europe show the continuing emergence of non-traditional investment groups in the industry. The fund, managed by Notion Capital, is expected to invest in roughly 20 early-stage companies during the next decade. Startups can leverage the resources of programs like incubators, which can sometimes reduce or delay the need for capital, and some governments offer grants not only for startups, but also for expanding technology companies.
By considering recent funding rounds announced in the industry, several possible trends can be identified. Indeed, it’s important to understand the market for investment in the industry in order to make difficult business decisions about finance strategy.
Cloud Management and Security
The most active area of investment in the cloud and hosting ecosystem appears to be cloud management and security. Tools to provide control and visibility are popular among organizations

 

(Bloomberg) — Dropbox Inc. is expected to hire Goldman Sachs Group Inc. as lead adviser on its potential initial public offering, according to people familiar with the matter.
The file-sharing company is working with Goldman Sachs to prepare documents for an IPO that could be filed as soon as this year, the people said, asking not to be identified as the details aren’t public. Dropbox has also held talks with JPMorgan Chase & Co. about a role on the listing, though no banks have yet been officially mandated, the people said.
No final decisions have been made and Dropbox may choose not to go forward with the IPO process. Goldman Sachs has previously advised the company on a credit line as well as earlier funding rounds, the people said.
Representatives for Dropbox, Goldman Sachs and JPMorgan declined to comment.
After its founding in 2007, Dropbox gained a loyal following from people looking to store photos and other files in the cloud, making them available from any computer or mobile device. It rode this wave to a $10 billion valuation in early 2014, making it one of Silicon Valley’s most valuable unicorn startups.
The company’s chief executive officer and co-founder, Drew Houston, said in April that the company is now generating a profit excluding interest, taxes, depreciation and amortization, a key metric that investors will watch as the software maker moves closer to becoming a public company.
“It’s rare for software companies to be operating at

 

Thank goodness the GoDaddy (NYSE: GDDY) IPO is over it can get back to business. One of the obstacles to an IPO is that it does take a lot of time, and prohibits the company from making fairly large moves.

The post Fresh Off IPO, GoDaddy Makes First Acquisition in San Francisco’s Elto appeared first on Web Hosting Talk.

 

I believe the best way to summarize merger and acquisition in the web hosting space during 2014 would be: there were no trends, it was not a barn-burner year; it was a yawn. If there was a significant IPO, let me know; even insignificant. That’s not to say it was not interesting, but fast and furious – no.

The post 2014 Marks Humdrum Year for Hosting M&A, As-A-Service Sector to Drive Excitement in 2015 appeared first on Web Hosting Talk.

 

At HostingCon 2014, the WHIR caught up with GoDaddy GM of Hosting, Commerce and Security, Jeff King. While he remained tight-lipped about the IPO, he talked about new hosting products, the Media Temple acquisition, and building out the team at GoDaddy to better serve small businesses.

The post With a Focus on People and Product, GoDaddy Lays Groundwork for IPO appeared first on Web Hosting Talk News.

 

At HostingCon 2014, the WHIR caught up with GoDaddy GM of Hosting, Commerce and Security, Jeff King. While he remained tight-lipped about the IPO, he talked about new hosting products, the Media Temple acquisition, and building out the team at GoDaddy to better serve small businesses.

The post With a Focus on People and Product, GoDaddy Lays Groundwork for IPO appeared first on Web Hosting Talk News.

 

Once known for its commercials made to appeal more to NASCAR fans than to techies, GoDaddy has upped its seriousness leading up to a new Initial Public Offering. It turns out that the tactics that helped it become one of the largest hosting companies in the world needed an update, and the past few years have seen GoDaddy reassess and reinvent itself to become IPO-ready.

 

You probably have read that GoDaddy is going public in a $100 million IPO. I scratched my head. My first thought was $100 million can’t be right. After pawing through the 260-page SEC filing, my thoughts were confirmed. I also came up with some interesting facts about GoDaddy.

 

GoDaddy is in the process of selecting underwriters for its IPO, according to a report by the Wall Street Journal over the weekend, citing two anonymous sources familiar with the matter.

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