Q3 2016 Nutanix IPO Splash. Ho-Hum Storage M&A

Q3 2016 ends on a high note with the Nutanix IPO raising $238M and the stock more than doubling from the initial pricing of $16.00. Current market capitalization is around $4.8B or roughly 10x trailing twelve months’ revenue. Last quarter revenue grew by 87% Y/Y to $139.8M with losses of $49.9M. The top line growth is certainly impressive but the market will be looking for markers to profitability in the coming quarters. Q3 Storage M&A was highlighted by the following:

  • 7 deals totaling $480M in consideration with median deal size of $180M
  • j2 Global continues with aggressive roll-up strategy, buying 3 SaaS companies
  • Nutanix tucks in PernixData prior to IPO
  • HPE acquires SGI for the core HPC offerings

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