Database security solutions developer Imperva Inc., co-founded by president and CEO Shlomo Kramer, filed on Friday with the US Securities and Exchange Commission (SEC) for an IPO on Nasdaq. The company plans to raise $75 million, and some shareholders also plan to sell shares as part of the offering. The company did not disclose in the filing the price range for the offering, but sources believe that the valuation for the IPO will be at least $300 million.
Kramer was one of the three co-founders of Check Point Software Technologies Ltd. (Nasdaq: CHKP). He founded Imperva in 2002, after leaving Check Point. Imperva has been successful, achieving double-digit revenue growth, although it is not yet profitable. It currently has over 1,300 customers in 50 countries.
Imperva said in the filing that spending by enterprises on IT security will rise from $27 billion in 2010 to $38 billion in 2014. Imperva believes that only a fraction of this spending goes toward database protection, the company's specialty, creating the potential for rapid growth.
Imperva has raised $54 million to date, and had $18.9 million in cash at the end of March. The company's cash flow is still insufficient, so the IPO is a kind of default option.
Imperva said that JP Morgan Securities LLC and Deutsche Bank Securities LLC are joint book-running managers for the offering. RBC Capital Markets, Lazard Capital Markets and Pacific Crest Securities are the co-managers.
Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2011
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