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Wednesday, May 24, 2017

Ford, Microsoft and Dell EMC-backed start-up Pivotal could IPO by mid-2018, sources say

Enterprise software company #Pivotal Software, which was spun out of #EMC and its subsidiary, #VMware, a few years ago, is looking at an initial public offering by the middle of next year, according to sources familiar with the matter. They did not give details on the size of the estimated float.

The San Francisco -based company is an offshoot of software development consulting firm Pivotal Labs, which was previously acquired by EMC. Pivotal Software started with cloud technology from VMware, big data capabilities provided by EMC and a $105 million investment from General Electric.

It is also backed by major names like Ford , which led a funding round along with Microsoft and others that valued Pivotal at $2.8 billion.

When asked about the IPO, Pivotal CEO, Rob Mee, told CNBC, "We'll definitely do it when the market conditions and the business conditions are just right."

Last year, VMware , EMC and Pivotal became subsidiaries of Dell Technologies .

Pivotal helps companies build, test, deploy and update software applications that can run either on public cloud such as Amazon Web Services and Microsoft Azure or on private cloud.

Mee said there is an emphasis on doing knowledge transfer at the firm that allows developers to continuously learn and that Pivotal does not hold anything back as competitive advantage.

"Everything that we do is open-source ... in that mode of openness, now that we provide cloud technology as well, which we have built over the last four years, (the cloud business) has become a big growth engine for us," said Mee.

Last year, the cloud business saw a 130 percent on-year increase, with its flagship software — Pivotal Cloud Foundry — selling over $270 million in annual bookings.

Mee said he expects the business to grow again in 2017 because there is a realization among well-heeled legacy companies that they need to develop agile, cloud-based software to remain on par with their industry disruptors.

https://uk.finance.yahoo.com/news/ford-microsoft-dell-emc-backed-041500140.html

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