Except for a few deals -- such as the Visa (NYSE: V) public offering -- the IPO market has been fairly quiet. But, there are some companies that think things will warm up.
Take SolarWinds, which has recently filed for an offering. The company develops enterprise-class network management software. What's more, the technology is easy to use (which is a rarity in the space).
As of last year, SolarWinds had more than 50,000 customers, which range from small businesses to Fortune 500 biggies.
A key to SolarWinds success is its focused marketing, which heavily leverages online marketing. There is also a direct sales force that knows how to close leads.
So far, the results have been stunning. From 2005 to 2007, revenues have gone from $27.9 million to $61.7 million. What's more, operating income is about $30.9 million.
And there is much room for growth. According to a research report from Gartner, the network management sector is expected to grow from $4.95 billion in 2008 to $5.66 billion by 2011.
The underwriters on the IPO include JP Morgan (NYSE: JPM), Goldman Sachs (NYSE: GS) and Lehman Brothers (NYSE: LEH). You can also locate the prospectus at the SEC website.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
3-31-2008 @ 5:01AM
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