Midmarket, Mergers and Acquisitions

Presidio (PSDO) IPO Set for Friday, March 10: Report

Presidio (PSDO) appears poised for an initial public offering (IPO) on Friday, March 10, according to The Daily Quint. The hybrid cloud provider and MSP has previously indicated that it plans to raise about $250 million in the offering. The proposed IPO values the company at roughly $2.2 billion to $2.4 billion -- or roughly 10.5 to 12 time trailing EBITDA, according to ChannelE2E estimates.

Updated March 10, 2017, 6:00 a.m. ET: Presidio has now set the price for its proposed IPO and shares are expected to start trading today.

Presidio's proposed IPO could be a key inflection point for VARs and MSPs that are pursuing hybrid cloud services. Presidio itself has rapidly evolved from traditional IT product sales and consulting towards managed and cloud services -- both on- and off-premises.

The company, led by CEO Bob Cagnazzi, has also successfully targeted midmarket customers -- largely avoiding commodity SMB sales and direct vendor competition in global 2000 accounts. Presidio's 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 a prospectus viewed by ChannelE2E.

Key Presidio partners include Cisco Systems, Dell EMC and VMware, among others.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.