Bloomberg News

Barracuda Said to Pick Morgan Stanley for Initial Offering (1)

June 21, 2013

Barracuda Networks Inc., a provider of Internet security and data-protection systems, hired Morgan Stanley to lead an initial public offering that would seek to raise $100 million to $150 million, three people with knowledge of the matter said.

The offering will happen later this year, said the people, who asked not to be identified because the information is private.

Barracuda Networks, based in Campbell, California, is seeking to go public after it raised $130 million in venture capital from Sequoia Capital and Francisco Partners in October. The company provides spam-filtering and storage systems to more than 150,000 customers including Oracle Corp., CBS Corp. and AOL Inc., according to its website.

Barracuda Networks, founded in 2003, is profitable and generates hundreds of millions of dollars in annual revenue, Chief Financial Officer David Faugno said in October. The company, known for its advertisements in airports, had 1,000 employees in 16 countries, Faugno said at that time.

William “BJ” Jenkins was named chief executive officer of Barracuda Networks in November, succeeding co-founder Dean Drako, who remains on the board.

Sales, Acquisitions

Barracuda Networks planned to use the cash it raised from the venture firms last year to expand sales, and possibly for acquisitions, Faugno said at the time. Last month, the company announced it had bought SignNow, a provider of mobile-signing and document-storage technology. Terms of the sale weren’t disclosed.

Competitors of Barracuda Networks include Palo Alto Networks Inc., the company that raised $299 million in an IPO in July including an over-allotment option. Palo Alto Networks, which surged as much as 71 percent in its first two months of trading, has given back those gains and closed more than 2 percent below its IPO price in New York trading today.

Akhilesh Raina, a spokesman for Morgan Stanley, and Mary Catherine Petermann, a spokeswoman for Barracuda, declined to comment.

To contact the reporter on this story: Lee Spears in New York at lspears3@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net


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