LogRhythm Said to Hire Morgan Stanley, JPMorgan for IPO

Cybersecurity company LogRhythm Inc. hired Morgan Stanley and JPMorgan Chase & Co. to help it prepare to go public, people with knowledge of the matter said.

An initial public offering is possible as soon as next year, said the people, who asked not to be identified because the information is private. The Boulder, Colorado-based company’s investors include Siemens AG, Access Venture Partners and Piper Jaffray Cos., according to its website.

LogRhythm, which makes technology that helps customers monitor, analyze and neutralize online threats, is among a number of closely held cybersecurity companies that owners have geared up for an exit in recent months.

Carbon Black Inc., backed by Blackstone Group LP, also is working with Morgan Stanley and JPMorgan on an IPO, people familiar with the matter said last month. Bain Capital-backed Blue Coat Systems Inc., which filed for an IPO in June, is instead being acquired by Symantec Corp.

Representatives for LogRhythm and Morgan Stanley didn’t immediately respond to requests for comment. A representative of JPMorgan declined to comment.  

It’s been a slow year for offerings by technology startups. Only two venture capital-backed companies have gone public in the U.S. this year: Acacia Communications Inc. and Twilio Inc.

The bigger deals have come from spinoffs. Dell Inc. sold shares in SecureWorks Corp. in April. The cybersecurity company has climbed more than 3 percent since its debut and has a market value of about $1.2 billion. Line Corp., the Japanese mobile-messaging company owned by South Korea’s Naver Corp., will start trading this week after selling $1.3 billion in stock at a $6.9 billion valuation.

Reuters first reported LogRhythm hired Morgan Stanley and JPMorgan.

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