AAA Citrix-backed GlassHouse withdraws IPO

Citrix-backed GlassHouse withdraws IPO

Citrix-backed cloud data company GlassHouse Technologies has withdrawn its application for an initial public offering today. 

Patrick Scannell, chief executive of GlassHouse Technologies, said: "Obviously the economic climate continues to be volatile, and we feel these are not the optimal conditions for GlassHouse to move forward with an IPO. We are focused on being the leader in vendor independent services that provide strategy and operational support for our customers as they confront rapidly evolving end-user, cost and security demands on their IT environments."

Information technology company Citrix Systems helped flotation candidate GlassHouse in July raise an additional $6m as part of its Series F round ahead of its initial public offering.

Citrix invested $5m, while US venture firm Greenspring Crossover Ventures invested $1m, according to a July filing. The $5m investment was in addition to an earlier $5m investment by Citrix in the series F round. Dow Jones Venture Source said the latest investment took the round to $20.8m.

Since 2001, the company has raised $81m in preferred stock and $68m in debt. The company owes computer company Dell $38.5m from loans.

The largest shareholders in Glasshouse are venture firms Sigma Partners (26.8%), Grandbanks Capital (12.2%), Kodiak Venture Partners (9.9%) Paladin Capital Group (8.3%). Citrix presumably has less than a 5% stake, as it is not mentioned in the list of stockholders with greater than 5% of the company.

Glasshouse’s float was advised by the following banks: Stifel Nicolaus Weisel, William Blair & Company, Oppenheimer & Co and Needham & Company. The underwriters have changed since January this year, when Goldman Sachs and Credit Suisse were leading the offering.

Glasshouse had $98.9m in reported revenues in 2010 and posted a loss of $25.9m that year. GlassHouse originally listed to float in 2007.

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