Cloud storage service Egnyte hires banks for IPO, sources say

By Thomson Reuters Feb 28, 2024 | 3:37 PM

By Echo Wang and Anirban Sen

(Reuters) – Cloud storage service Egnyte has hired underwriters for an initial public offering (IPO) in New York that could value it at more than $3 billion, according to people familiar with the matter.

Egnyte has tapped JPMorgan Chase to lead its preparations for a stock market flotation that could come as early as this year, the sources said, cautioning the plans could change subject to market conditions.

UBS Group is also one of the appointed underwriters, one of the sources added.

The sources requested anonymity because the matter is confidential. Egnyte, JPMorgan and UBS declined to comment.

Egnyte, which competes with cloud computing firms such as Box and Dropbox, provides storage, governance, and security tools to companies in industries including life sciences, financial services, retail, and publishing.

Demand for cloud computing services is on the rise due to the rapid growth of generative artificial intelligence, which spurs demand for data storage. Technology researcher Gartner expects worldwide end-user spending on public cloud services to grow 20.4% to $678.8 billion in 2024.

Founded in 2007, Egnyte raised $75 million in a funding round led by Goldman Sachs’ growth equity arm in 2018 that valued the startup at $460 million. Since then, the company has grown steadily and is now profitable, the sources said.

Egnyte counts Kleiner Perkins and GV, which is backed by Google parent Alphabet, among its other investors.

(Reporting by Anirban Sen and Echo Wang in New York; Editing by Chris Reese)