All GlassHouse Wants for Christmas Is a $100 Million IPO

Wednesday Dec 19th 2007 by Paul Shread
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The storage consultancy has joined the parade of storage companies seeking fortune on Wall Street.

GlassHouse Technologies has joined the parade of storage companies seeking fortune on Wall Street.

The company filed plans with the SEC yesterday for a $100 million initial public offering, led by Goldman Sachs and JP Morgan.

The 6-year-old storage and IT consulting and services firm boasted 43 percent sales growth in the first nine months of 2007 to $40.6 million, including acquisitions. Its "organic" growth rate without acquisitions was about half that.

Factoring out product sales, which the company passes off to partners after an acquisition to maintain its vendor independence, GlassHouse's services growth rate was 56 percent, with 26 percent organic growth.

The company has made four acquisitions this year for $18.7 million in cash and $10.7 million in stock, expanding into the UK, Israel, Turkey and server virtualization.

Customers include JP Morgan, Biogen and the Bank of Tokyo, and partners include Hitachi Data Systems, Savvis and CA (see Library of Scotland Preserves Digital History). Indirect partners include Data Domain, EqualLogic (being acquired by Dell) and 3Par.

GlassHouse packages its services into an offering dubbed "Transom," which includes proprietary software tools, methodologies and expertise. The 425-employee firm considers its main competitors to be IBM, HP, EMC, Accenture and CSC.

Despite the strong growth, GlassHouse remains a long way from profitability. The company lost $10.9 million in the first nine months of the year, up from a $7.2 million loss in the first nine months of 2006.

The company had $11.5 million in cash as of Sept. 30.

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