AAA Box to open up in $250m IPO

Box to open up in $250m IPO

Box, a US-based cloud content platform backed by a host of corporate investors, has filed for an initial public offering that could raise up to $250m.

Founded in 2005 and based in California, Box is the developer of a platform that enables businesses to manage content on the cloud and share information anywhere on the web.

The company has raised more than $414m, according to TechCrunch, and closed a $100m round as recently as January from strategics including Itochu Technology Ventures, the corporate venturing arm of Japan-based trading concern Itochu, Japan-based electronics manufacturers Macnica and Mitsui, the digital services and innovation arm of Spain-based telecommunications company Telefónica, and Australian telecom provider Telstra, which reportedly valued the company at $2bn.

Other corporate investors in Box include SAP Ventures, the corporate venturing arm of computing company SAP, which joined Box’s investors as part of the company’s $150m 2012 series E round, cloud computing company Salesforce.com, which first invested in Box’s $81m series D round in 2011, and Intel Capital.

Box’s largest shareholders are venture capital firm Draper Fisher Jurvetson, which holds a 25.5% share of the company, and VC firm U.S. Venture Partners, which owns a 13% stake. General Atlantic, Scale Venture Partners, Bessemer Venture Partners and Meritech Capital Partners each own stakes above 5%.

Box plans to use the proceeds from the IPO for general corporate purposes, with at least 50% to go to sales and marketing, product development, general and administrative matters, and capital expenditure to support growth.

Morgan Stanley & Co., Credit Suisse Securities (USA) and J.P. Morgan Securities LLC will serve as joint book-running managers for the offering. BMO Capital Markets will act as lead manager, and Canaccord Genuity, Pacific Crest Securities, Raymond James & Associates and Wells Fargo Securities will act as co-managers

Apart from its investors, there is also another corporate connection. perhaps significantly, Padmasree Warrior, chief technology and strategy officer for computing company Cisco, joined the board of Box only a few days ago, though it is currently unclear whether Cisco is planning to invest in the company.

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