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Posted On: 03/08/2017 7:59:36 AM
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Presidio To Raise $250 Million In IPO For Debt Repayment
Mar. 1.17 | About: Presidio (PSDO)
Donovan Jones
Donovan Jones
IPOs, tech, alternative investments, CEO VentureDeal.com
VentureDeal
(1,385 followers)
Summary
IT reseller Presidio aims to raise $250 million in an IPO.
The company won't be investing in its business, rather it will be paying back its creditors.
Presidio's lackluster revenue growth and heavy debt load leave me to recommend investors AVOID the IPO.
Quick Take
IT infrastructure software company Presidio (Pending
SDO) has indicated proposed terms for its $250 million IPO.
The company will use all the proceeds to pay down its heavy debt load, instead of investing in the business.
While it is growing revenues, 6% annual top-line revenue growth rate is nothing brag about, so my opinion is to AVOID the IPO.
Company Recap
New York-based Presidio was founded in 2003 and resells a suite of IT software, security and infrastructure solutions primarily to middle market, enterprise and government clients based in the U.S.
Below is a brief explainer video:
(Source: Presidio)
Presidio's categories of vendor agnostic IT services are:
Cloud
Digital Infrastructure
Security
The company is owned by private equity firm Apollo Global Management, which acquired it in early 2015.
CEO Robert Cagnazzi has been with the firm since 2012 as a result of the acquisition of his prior company, Bluewater Communications.
Commentary
Presidio originally filed for a $100 million IPO, which was seen as a placeholder figure.
I previously wrote about the company in my detailed piece, Presidio IPO To Pare Debt And Fuel Growth.
In that piece I presented a generally growing IT middle market spend profile, exceeding 5% CAGR from 2015 through 2020, and reaching $293 billion in annual spend.
However, there are numerous competitors to resellers such as Presidio, including:
Accenture (NYSE: ACN)
Dimension Data
Presidio To Raise $250 Million In IPO For Debt Repayment
Mar. 1.17 | About: Presidio (PSDO)
Donovan Jones
Donovan Jones
IPOs, tech, alternative investments, CEO VentureDeal.com
VentureDeal
(1,385 followers)
Summary
IT reseller Presidio aims to raise $250 million in an IPO.
The company won't be investing in its business, rather it will be paying back its creditors.
Presidio's lackluster revenue growth and heavy debt load leave me to recommend investors AVOID the IPO.
Quick Take
IT infrastructure software company Presidio (Pending
SDO) has indicated proposed terms for its $250 million IPO. The company will use all the proceeds to pay down its heavy debt load, instead of investing in the business.
While it is growing revenues, 6% annual top-line revenue growth rate is nothing brag about, so my opinion is to AVOID the IPO.
Company Recap
New York-based Presidio was founded in 2003 and resells a suite of IT software, security and infrastructure solutions primarily to middle market, enterprise and government clients based in the U.S.
Below is a brief explainer video:
(Source: Presidio)
Presidio's categories of vendor agnostic IT services are:
Cloud
Digital Infrastructure
Security
The company is owned by private equity firm Apollo Global Management, which acquired it in early 2015.
CEO Robert Cagnazzi has been with the firm since 2012 as a result of the acquisition of his prior company, Bluewater Communications.
Commentary
Presidio originally filed for a $100 million IPO, which was seen as a placeholder figure.
I previously wrote about the company in my detailed piece, Presidio IPO To Pare Debt And Fuel Growth.
In that piece I presented a generally growing IT middle market spend profile, exceeding 5% CAGR from 2015 through 2020, and reaching $293 billion in annual spend.
However, there are numerous competitors to resellers such as Presidio, including:
Accenture (NYSE: ACN)
Dimension Data
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I'm in it to win it!
NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
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