Aerohive Networks Talking to Banks for 2013 IPO
Aerohive Networks Inc., a provider of wireless networking systems, is in talks to hold an initial public offering as early as this year, Chief Executive Officer David Flynn said.
The Sunnyvale, California-based seller of Wi-Fi equipment and software is in discussions with Morgan Stanley, JPMorgan Chase & Co. and Goldman Sachs Group Inc. about going public, Flynn said in an interview yesterday. Aerohive will use proceeds for acquisitions to broaden its product offerings, he said.
In January, Aerohive added Gordon Brooks as chief financial officer from Web-security vendor Blue Coat Systems Inc. Paul Milbury, who guided Starent Networks Corp. through an IPO process and an eventual acquisition by Cisco Systems Inc., joined Aerohive’s board.
“We certainly do have an IPO on the road map,” Flynn said. “I spend a lot of time talking to bankers. We are going to do it when it’s right for us. But I am driving the company to make sure we are ready to go this year.”
Aerohive continues to grow faster than the competition, Flynn said. Last year, shipments more than doubled, with the company’s annual revenue run rate reaching $100 million, he said. Ruckus Wireless Inc., which went public last November, could serve as a model for Aerohive’s IPO, Flynn said.
Aerohive has raised $94.5 million in funding from investors including Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, Northern Light Venture Capital, New Enterprise Associates, Institutional Venture Partners and Four Rivers Group.
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