Intermedia IPO Delayed; Cloud Service Provider Cites “Adverse” IPO Market
Intermedia Cloud Communications Inc. has postponed an IPO (initial public offering). The cloud service provider (CSP), which offers unified communications as a service (UCaaS) to channel partners and MSPs, cited recent choppy IPO waters on Wall Street.
In a prepared statement about the IPO delay Intermedia CEO Michael Gold said:
“While we received strong interest and engagement from the broader institutional investor market, we are seeing adverse conditions in the current IPO market that we believe would limit the opportunity of our IPO at this time. The current adverse conditions may be short-lived, and we will continue to monitor the market for more stable and favorable IPO conditions.”
Intermedia had planned to raise up to $366 million in an offering that valued it as high as $1.5 billion, according to Silicon Valley Business Journal, Intermedia’s planned stock symbol is INTM.
Intermedia CSP Revenues, Channel Partner Relationships
Intermedia, backed by private equity firm Madison Dearborn Partners, offers various voice, video, collaboration, unified communications, and security services to MSPs and end-customers. Intermedia had more 7,000 channel partners and 122,000 business customers as of December 2020, according to an SEC filing.
Intermedia’s financials, according to the SEC filing, are as follows:
- Revenue was $251.6 million in 2020, up from $240.5 million in 2019.
- Net loss was $21.7 million in 2020, compared to a $5.5 million net loss in 2019.
- Adjusted EBITDA was $46.7 million in 2020, compared to $61.9 million in 2019.
Intermedia Business Transformation: Beyond Hosted Exchange
Intermedia a decade ago was known mostly as a Microsoft Exchange hosting provider. But the company successfully shifted toward multiple cloud services opportunities when Microsoft Office 365 gained market traction.
ChannelE2E had been guessing that Intermedia might be a potential SPAC (Special Purpose Acquisition Company) target. More than 80 SPACs — i.e., blank-check companies — are in the market seeking to acquire technology businesses.