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UK biz email slinger Mimecast files for $100m IPO in US

Opts for Wall Street over the City... Fancy

Mimecast filed for an initial public offering on Wall Street on Friday and said it hoped to raise up to $100m (£64m).

The London-based email security vendor, which has 14,500 biz customers on its books, said that it planned to list under the symbol "MIME" on the Nasdaq exchange.

For its most recent quarter, Mimecast – which has 500 employees in nine locations around the globe – reported sales of $33.3m (£21.5m), up 24 per cent on 2014's revenue in the three months ended 30 June.

The company's net loss for the quarter stood at $2.2m (£1.42m).

Mimecast noted in its filing (PDF) with the US Securities and Exchange Commission that it was boom time for hackers as well as for outfits fighting such attacks. It said:

As a result of the widespread impact of phishing attacks, the disruption of spam and the magnitude of recent data breaches, organisations are elevating the priority of IT security projects.

The IPO could value Mimecast as high as $1bn (£645m), according to Megabuyte senior software analyst Lee Prout.

"Mimecast’s growth is being driven by the US market," he said.

"It is particularly interesting to highlight that the company’s latest financials show that some fast-growing security businesses, such as Mimecast and Proofpoint, have now scaled to a point where they can turn profitable, whilst continuing to increase their levels of investment in development and sales and marketing." ®

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