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Nutanix Raises Funds at $2 Billion Valuation, Delays IPO

Nutanix Inc., a maker of software and hardware for data centers, closed a $140 million funding round at a valuation of $2 billion, double its value since January.

The San Jose, California-based company plans to hold an initial public offering “roughly a year from now,” Duston Williams, Nutanix’s chief financial officer, said in an interview. It could also be delayed until 2016, he said.

Nutanix had been planning to hold an IPO in the last three months of this year or first quarter of 2015. A selloff in technology shares earlier this year prompted at least one company -- cloud-storage provider Box Inc. -- to push back a public debut. The main priority for Nutanix now is to build a relationship with Wall Street, via a private funding round, Chief Executive Officer Dheeraj Pandey said.

“This round mimics and resembles a public round in terms of its size and valuation,” Pandey said in an interview. “We didn’t raise this money in a froth. This season was very different from the December to April season. These investors were grounded and have seen through the euphoria.”

The latest financing was led by Fidelity Investments and Wellington Management, said people with knowledge of the matter, who asked not to be identified because the information isn’t public. The round brings Nutanix’s total funding to about $312 million. Other Silicon Valley startups that have raised more than $100 million this year include Lookout Inc., Airbnb Inc., AppDynamics Inc. and Hortonworks Inc.

A representative from Wellington didn’t respond to a request for comment. Jeff Cathie, a spokesman for Fidelity, declined to comment, as did Declan Waters, a spokesman for Nutanix.

Software-Defined Storage

Nutanix joins other startups that have seen their valuations jump this year. Airbnb was valued at $10 billion earlier this year, while Uber Technologies Inc. got financing in June that pegged its value at $17 billion, up from $3.5 billion previously.

Nutanix, which sells technology for storing and analyzing data on commodity hardware, is forecasting sales of $200 million this year and has more than 800 customers, including the U.S. Navy, ConocoPhillips, China Merchants Bank Co. and Honda Motor Co. The company’s products are known as software-defined storage, which means their key capabilities come from software systems, rather than specialized hardware. Nutanix competes with startups such as Scale Computing Inc. and SimpliVity Corp., and established providers such as EMC Corp. and VMware Inc., which introduced a Nutanix-like product called “EVO” at its conference this week.

Nutanix announced an agreement with Dell Inc. in June that will expand its sales channel. The company will hold its first customer conference in Miami in June.

To contact the reporter on this story: Jack Clark in San Francisco at jclark185@bloomberg.net

To contact the editors responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net Reed Stevenson

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