Wall Street Journal: Thoma Bravo-Backed SailPoint Lays the Groundwork for Future IPO
February 14, 2017
Cybersecurity company provides software products for identity management
Although 2017 has started off slowly for private companies seeking initial public offerings, SailPoint Technologies Inc. is betting its continuing revenue growth and a growing need for cybersecurity products will pave the way for a successful public market debut.
SailPoint, which is backed by private-equity firm Thoma Bravo, is laying the groundwork for a possible IPO filing later this year, according to people familiar with the situation.
The Austin, Texas-based cybersecurity company offers identity management software that helps companies monitor security breaches, including those from inside companies themselves, along with other security-related tasks such as password management, compliance control and data access, according to its website. Its customers include Weight Watchers International Inc., Molina Healthcare Inc. and Sallie Mae.
SailPoint has made two new hires to help groom it for an IPO filing later this year, if markets are favorable, these people said. In November, the company announced it had appointed Kevin Hansel as chief information officer to support its continued business expansion. More recently, it hired a general counsel, who will join SailPoint in about two weeks, one of the people said, although this person declined to name the general counsel.
“There have been a lot of opportunities that were snatched out of the hands of the public market investors,” this person said, noting Cisco Systems Inc.’s $3.7 billion recent announced acquisition of AppDynamics Inc. in January, the week of the startup’s slated IPO. “[SailPoint] is profitable and has the flexibility [to wait] until the market is attractive.”
If SailPoint moves forward with its IPO ambitions, it would be one of only a few technology companies braving the public markets so far this year. The highly anticipated IPO of disappearing-message app Snapchat’s parent company, Snap Inc., has attracted attention from investors because of its high private-market valuation and visibility in the social media market.
Other companies, such as big data analytics company Zeta Global Inc. and enterprise communication software provider Asana Inc., are considering possible public offerings in 2017, or have made strategic hires that may indicate a future public listing, according to previous reports in The Wall Street Journal.
Founded in 2005, SailPoint received an investment from Thoma Bravo in 2014. Since then, the company’s revenue has grown steadily. According to a February 2016 news release, the company’s 2015 revenue surpassed $100 million. The firm announced this month that 2016 revenue had grown to more than $130 million, according to a release recapping last year’s financial results.
In 2016, the company added more than 220 customers, bringing its client base to more than 750, according to the release. Most recently, SailPoint announced last week it would collaborate with Microsoft Corp. to add identity governance capabilities to Microsoft’s Azure Active Directory, an identity and access management product.
It’s possible that despite its intent, SailPoint could get snapped up by a a corporate buyer or a private-equity firm before it enters the public market, given the large amount of capital such firms have available to invest. In December, cybersecurity company Optiv Security Inc. was purchased by KKR & Co. a little less than month after the company, which had been backed by Blackstone Group LP, disclosed plans for an IPO.
Read the full article on WSJ here: https://www.wsj.com/articles/thoma-bravo-backed-sailpoint-lays-the-groundwork-for-future-ipo-1487076301?tesla=y