Amid tech IPO freeze, Optiv Security prepares to go public later this year.
Nutanix and Dell’s SecureWorks are reportedly getting some company in the 2016 tech IPO market, which is experiencing a freeze unlike any we’ve seen since 2009. Bloomberg recently reported that Optiv Security has hired Goldman Sachs and Morgan Stanley to help it prepare for an initial public offering.
Planning for the IPO has just begun, but sources say it could move forward as early as later this year, depending on the state of the market. 2016 has been a desolate year so far in the IPO market in general, and the tech market specifically.
Optiv and SecureWorks are both part of the booming cybersecurity market, which is poised to hit more than $170 billion in 2020. SecureWorks’ business model is based on subscription services and contracts, and notably has yet to turn a profit despite rising annual revenues. Despite lukewarm analyst predictions, the company hopes to raise up to $158 million in next week’s IPO.
Denver-based Optiv, though making the transition toward a service-based model, still operates in large part as a traditional VAR. It was formed early last year by the merger of Accuvant, backed by Blackstone Group (BX), and FishNet Security, backed by InvestCorp. Together, the two entities had revenues totaling $1.5 billion in 2014. Optiv reported revenue of $2.0 billion by the end of last year. Blackstone, the largest private equity firm in the world, remains the company’s majority shareholder.