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Presidio IPO, Valuation Update: Potential $250 Million Offering?

Presidio CEO Bob Cagnazzi

Presidio CEO Bob Cagnazzi

Presidio will seek to raise $250 million in an IPO that values the IT solutions provider at an implied value of $2.2 billion to $2.4 billion, according to an updated Presidio prospectus filing today. The proceeds will be used for debt reduction, the prospectus said.

Presidio’s adjusted EBITDA was $211.1 million for its fiscal year ended June 30, 2016. That pegs the company’s valuation at 10.5 times to 12 times trailing EBITDA.

Presidio, based in New York and led by CEO Bob Cagnazzi, targets midmarket customers with a blend of hybrid cloud and managed IT services. Revenues grew from $1.76 billion in fiscal 2012 to $2.71 billion in fiscal 2016, an 11 percent compound annual growth rate (CAGR), according to the prospectus.

Presidio Managed IT Services: Strong

Presidio’s MSP practice is particularly strong — generating an average of $1.2 million per customer per fiscal year. Key partners include Cisco Systems, Dell EMC and VMware, among others.

The company has made 10 strategic acquisitions since 2004, and “through this experience we have created specific methodologies and processes related to the identification and integration of targets,” Presidio’s filing indicated.

Presidio, owned by Apollo, filed an earlier IPO prospectus in November 2016.

Updated 7:15 p.m. ET, Feb. 27, 2017: Valuation and EBITDA information have been corrected; an earlier version of this post had misstated valuation and EBITDA metrics.

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