Vista-backed IT software provider Datto sets terms for $561 million IPO

Datto Holding, which sells a hybrid IT infrastructure platform to managed service providers, announced terms for its IPO on Wednesday.

The Norwalk, CT-based company plans to raise $561 million by offering 22 million shares at a price range of $24 to $27. New investors Investment Group of Santa Barbara and Dragoneer Investment Group intend to purchase $112 million worth of shares in the offering. At the midpoint of the proposed range, Datto Holding would command a fully diluted market value of $4.2 billion.

Datto is the leading provider of cloud-based software and technology solutions purpose-built for delivery through the managed service provider (MSP) channel to small and medium businesses. The company’s cloud-based platform offerings include Unified Continuity, Networking, and Business Management software solutions and it currently serves 17,000 MSP partners.

Datto Holding was founded in 2007 and booked $493 million in revenue for the 12 months ended June 30, 2020. It plans to list on the NYSE under the symbol MSP. Morgan Stanley, BofA Securities, Barclays, Credit Suisse, Citi, Jefferies, RBC Capital Markets, Evercore ISI, BMO Capital Markets and Macquarie Capital are the joint bookrunners on the deal. It is expected to price the week of October 19, 2020.

The article Vista-backed IT software provider Datto sets terms for $561 million IPO originally appeared on IPO investment manager Renaissance Capital’s web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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McAfee Sets Terms of IPO, Hoping to Raise Up to $682 Million

McAfee, the cybersecurity company founded by tech eccentric John McAfee, has set the terms for its initial public offering, hoping to raise as much as $682 million in a deal that could value the company at $3.64 billion.

McAfee, based in San Jose, plans to sell 37 million shares at a price of $19 to $22 each. The stock will trade on Nasdaq, with the ticker symbol MCFE, the company said in an SEC filing.

Of the 37 million shares, 30,982,558 will come from the company and 6,017,442 from existing stockholders. McAfee expects to have 165.44 million Class A shares outstanding after the IPO.

In the six months through June 27, McAfee posted profit of $31 million, swinging from a loss of $146 million in the year-earlier period. Revenue rose 9% to $1.4 billion from $1.29 billion.

John McAfee founded McAfee Associates in 1987 and ran it until 1994, when he left the company.

McAfee’s anti-virus software was a market leader along with Norton in the 1990s and 2000s. It sold itself to Intel INTC for $7.7 billion in 2011.

In 2016, Intel sold a 51% stake to the San Francisco private-equity firm TPG for $1.1 billion. In its IPO prospectus, McAfee cites TPG and Chicago PE firm Thoma Bravo as investors.

After leaving McAfee Associates, John McAfee founded a raft of companies, including Tribal Voice, which offers the PowWow chat program; QuorumEx and Future Tense Central. 

In 2016 he sought the Libertarian Party nomination for president, losing to former New Mexico Gov. Gary Johnson. He gave it another shot this year, to no avail.

McAfee was arrested last week in Spain and is facing extradition to the U.S. on tax evasion charges. In a statement announcing the charges, the Department of Justice noted “The indictment does not allege that

Supply chain software company E2open nearing SPAC IPO – Reuters (Pending:PCPL.U)

Reuters sources say E2open is nearing a deal to go public through a merger with CC Neuberger Principal Holdings I  (PCPL.U) at a more than $2.5B valuation, including debt.

The deal between the SPAC and Insight Partners-owned E2open could be announced as soon as tomorrow.

CC Neuberger I went public in April, raising $414M to buy a company in the finance, tech, or business services sectors.

E2open provides supply chain management software for a range of industries, including high-tech, consumer packaged goods, and pharmaceuticals.

Check out the latest IPO news.

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TikTok rival Triller exploring IPO through SPAC merger: Report

  • Video app Triller is exploring the possibility of an IPO, sources told Reuters.
  • The company is reportedly in talks to set up a public listing via a merger with a special purpose acquisition company (SPAC).
  • It is simultaneously pursuing a private funding round, and sources told Reuters it had raised $100 million at a valuation of $1.25 billion so far.
  • The sources said no deal is yet firm, and that Triller is still deciding which path to take.
  • Visit Business Insider’s homepage for more stories.

Short-form video app Triller, which bills itself as a rival to the wildly successful TikTok, is reportedly exploring an IPO.

Reuters reported Sunday that Triller was in talks with investment bank Farvahar Partners about a potential merger and IPO.

Sources told Reuters the merger, if successful, would be with a special purpose acquisition company (SPAC). 

SPACs are essentially shell companies that go public to raise capital in order to acquire a company, allowing their target to easily obtain a public listing.

Triller was simultaneously in talks to raise a private fundraising round, sources told Reuters, adding that it had raised $100 million at a valuation of $1.25 billion so far.

Reuters’ sources said Triller was deciding whether to carry on with the private raise or forge a deal with the SPAC. They added that no deal was certain yet.

Triller was not immediately available to comment on the report when contacted by Business Insider.

Triller has positioned itself as an emerging competitor to TikTok, which it is suing for alleged patent infringement.

Last month it said it had 100 million monthly active users, and CEO Mike Lu told TechCrunch Disrupt on September 15 that the company’s growth was “definitely on a rocket ship.” 

TikTok remains much larger than Triller, with 689 million monthly active users

Forget Snowflake — This Is the Software IPO That Caught My Eye

Last month, investors went absolutely bananas for software initial public offerings, or IPOs. No company highlighted the craze more than Snowflake (NYSE:SNOW) — shares of which have more than doubled from their initial price. 

But in the Snowflake-induced haze of IPO stocks, another company caught my attention: JFrog Ltd. (NASDAQ:FROG). This company checks off a lot of boxes that I look for in an investment: founder-led, strong balance sheet, and a barbell approach that seems to be working very well.

That said, two issues give me pause. Read below to get the whole story.

Cloud online storage technology concept. with magnifying glass

Image source: Getty Images

First, the company from 30,000 feet

I’m a big fan of solid mission statements. When those mission statements can easily convey what a technology company does to a non-techie like myself, I like it even more. JFrog’s mission is “to power a world of continuously updated, version-less software.”  The company calls this “Liquid Software.”

If that still sounds confusing, think of it this way. Back in 2000, when I used TurboTax to do my taxes, I had to go to the store, buy the CD-ROM with the most up-to-date version (there are always tax changes), and install it on my computer. Only then could I actually start putting my information in. 

Today, TurboTax has moved to the web. There’s no physical CD to buy; the software is all updated by the time tax season starts. Huge parts of the process have been eliminated.

But JFrog wants to take it one step further: eliminate even periodic updates, allow software to be continuously and instantaneously updated. The company has six different modules that customers can use to do this, ranging from its core Artifactory (where coding packages can be stored) to Xray (scanning and securing software updates) to the actual distribution of those