Category Archives: IPO

EMC Dell in rush to go public with Pivotal in early 2016

Dell office logoSoftware company Pivotal could be subject to an initial public offering (IPO) in early 2016, according to web site Recode, which claims to quote sources at parent company EMC involved in planning the launch. The IPO is being pushed forward to take place before the Dell acquisition of EMC goes ahead next year, with the anticipated billions raised to be used to service debt.

Big data analysis specialist Pivotal made $227 million in revenue in 2014 but posted a $106 million operating loss on revenue of $118 million for the first half of 2015, according EMC’s filed reports.

Pivotal’s joint owners, EMC and GE, are to offer a minority stake in the software company to public shareholders, says the report. This would be a repeat of a tactic previously used by EMC when it sold 19% of its shares in VMware in an IPO on the New York Stock Exchange in 2007. Sources expect EMC is planning to sell around 20% of its Pivotal shares but retain the rest.

The plan involves Pivotal filing for its IPO confidentially under the auspices of the US Jumpstart Our Business Startups Act, with the IPO concluded before the proposed $67 billion acquisition of EMC by computing giant Dell.

Both EMC CEO Joe Tucci and Dell CEO Michael Dell have supported the idea for a Pivotal IPO in the past. Speculators say the IPO may have been expedited because it would help to pay off some of the estimated $50 billion debt that Dell will have once the EMC takeover closes. A successful Pivotal IPO could potentially raise billions in new capital.

Meanwhile new capital from the Pivotal IPO would supplement some of the funding lost by the decline in VMware shares since the Dell-EMC deal was announced. In August, VMware shares were around $90 each but since the Dell-EMC deal was announced, their price has fallen by a third to $60.15.

Spokespeople for Dell, EMC and Silver Lake, the private equity firm that co-owns Dell, declined to comment.

Software-defined storage vendor Scality nabs $45m to prep for IPO

Scality has secured $45m in its latest funding round and plans to go public in 2017

Scality has secured $45m in its latest funding round and plans to go public in 2017

Software-defined storage expert Scality has secured $45m in a funding round led by Menlo Ventures, which the company said will be used to fuel its North American and international expansion.

Scality’s offering uses object storage to abstract underlying hardware to create a single pool of storage that can be manipulated with a wide range of protocols and technologies (SMB, Linux FS, OpenStack Swift, etc.).

The company, which offers storage software and has large reseller agreements in place with big box vendors like HP and Dell, has secured over $80m since its founding in 2009. It claims over 50 per cent of the server market is now reselling its SDS software.

“There’s no doubt in my mind that today, Scality is the biggest disruptor of the traditional storage industry, and I am extremely excited to witness their progression,” said Douglas C. Carlisle, managing director at Menlo Ventures.

“Their innovative storage model is meeting demand for scale like no other product on the market, and is poised to keep up with the steep incline in data volumes. With Jerome’s forward-thinking mindset, we expect to see Scality continue to be a trailblazer and to take its RING technology to the next level.”

The company has spent the better part of the past two years scaling up its operations in Asia and Europe, but it said the new funding will go towards bolstering its North American presence, with a view towards releasing and IPO in 2017.

“Over the course of the last year-and-a-half, we’ve seen an unprecedented amount of funding given to software storage startups. At the same time, we’ve seen the traditional storage vendors lose market share, change leadership and shift their business model to mimic the software-defined strategy. This latest funding round comes at a time when Scality and the software-defined storage industry are poised to attract billions of dollars from customers that are rethinking their storage strategies,” said Jerome Lecat, chief executive at Scality.

“Our employees and partners believe in us, and the fact that this last funding round was done at 2x valuation speaks volumes about the overall confidence in the future of Scality. This new capital investment will allow us to massively boost our go-to-market, attract strategic new hires, continue to expand globally, and be primed for a successful IPO by 2017,” Lecat said.