Feeds

Nexsan tries for IPO - again

Second time lucky

The essential guide to IT transformation

Nexsan is trying for an IPO again, two years after the first attempt, and hoping that recovery from recession will open investors' wallets.

The company supplies storage arrays to hold long-term data at low cost by using graduated spin-down (aka AutoMAID) to reduce energy costs and deduplication to increase storage efficiency. Nexsan started out after its 1999 founding by offering low-cost storage arrays combining ATA drives and RAID controllers, called ATABeasts. These developed into SATABeasts and smaller SATABoys, and then SASBeasts and SASBoys too.

ITN bought Evertrust, a Canadian software company, in 2005 and used its software to develop the Assureon line of content-addressable archival data storage products.

Nexsan had three rounds of seed capital funding, which brought in $11m up to 2003, then it went through an A-round and landed $17m in December 2003. Another funding round brought in $7.5m in April 2007, making a total of $36.5m that we know about, and the company filed for an IPO in May 2008.

That IPO filing followed a successful year for storage IPOs with Data Domain, Compellent and 3PAR all going public in 2007. The 2008 SEC filing revealed Nexsan had not been profitable since its founding. The company was looking to raise $80.5m from that IPO, which was cancelled as the recession took hold.

We're told that it hopes to raise a much lower figure, $55m, this time around, through issuing 5 million shares for $10-$12/share. It says it recorded $63m sales in the 2009 calendar year and has been free cash flow positive for the past three years, although it does not say it has made profits.

The contrast with failed full-spindown MAID (Massive Array of Idle Drives) vendor Copan is telling. The firm went bankrupt after investors funded it to the tune of $100m, and SGI picked up some of its assets for $2m last week. Nexsan has cost its investors a lot less money and may well give them a fairly decent return if this IPO succeeds.

Storage and system consulting Glasshouse filed for an IPO earlier this year - its second time as well. Oddly enough its previous attempt was roughly at the same time as Nexsan's and it too has lowered its IPO goal, from the first attempt's $100m to $75m.

Let the modestly good IPO times roll. ®

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.