Tuesday, September 4, 2012

Infoblox Goes Public, Pops 36%

Infoblox (NYSE:BLOX), a developer of appliances for datacenters, popped by about 36% in its first day of trading after pricing its IPO around $16 last night.

Founded in 1999, Infoblox is a top player in helping to automate computer networks. Some of the functions include IP address management, device configuration, compliance, network discovery, policy implementation, security and monitoring. All this is done in real-time, which allows companies to better deal with any problems.

Infoblox has sold its appliances to over 5,400 end customers like Adobe (NASDAQ:ADBE), Boeing (NYSE:BA) and Caterpillar (NYSE:CAT).

Revenue growth has been strong. From 2009 to 2011, Infoblox’s sales grew from $61.7 million to $132.8 million for a compounded annual growth rate of 47%. The company also produces lots of cash flows, including $21.5 million last year.

A number of mega-trends are driving business for Infoblox right now. These include the surge in smartphones in the enterprise as well as the growth in cloud computing and virtualization. All these bring about lots of complexity to corporate networks and datacenters — which will only get worse.

For Infoblox, that means plenty of growth ahead.

Lead underwriters for the deal included Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS).

Tom Taulli runs the InvestorPlace blog�IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of��The Complete M&A Handbook”,��All About Short Selling��and��All About Commodities.��Follow him on Twitter at�@ttaulli�or reach him via�email. As of this writing, he did not own a position in any of the aforementioned securities.

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