AAA Switch turns to public markets

Switch turns to public markets

US-based data centre builder Switch has filed for a $100m initial public offering on the New York Stock Exchange that will give an exit to semiconductor technology producer Intel.

Founded in 2000, Switch designs, builds and operates data centres that run completely on renewable energy for customers in fields such as technology, telecommunications, financial services, digital media and cloud service provision.

The company made $31.4m in net income in 2016 from approximately $319m in revenue, and has so far generated $35.3m this year from just over $181m in revenue.

Intel Capital, Intel’s corporate venturing unit, contributed to a $124m round closed by Switch in 2011, investing alongside financial services firms Citigroup, Nevada State Bank, Bank of Nevada and City National Bank.

Switch has not disclosed additional funding and did not reveal the size of the stake held by Intel Capital or any of its other shareholders in its IPO filing, but Bryan Wolf, the Intel Capital managing director that oversees the unit’s data centre investments, is on Switch’s board.

The underwriters for the offering are Goldman Sachs, JP Morgan Securities, BMO Capital Markets, Wells Fargo Securities, Citigroup Global Markets, Credit Suisse Securities (USA), Jefferies, BTIG, Raymond James & Associates, Stifel, Nicolaus & Company and William Blair & Company.

– Photo courtesy of Switch, Inc.

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