Pivotal Software Plans to Go Public -- WSJ
March 24 2018 - 3:02AM
Dow Jones News
By Aisha Al-Muslim
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (March 24, 2018).
Cloud software-services company Pivotal Software Inc., a spinoff
of EMC Corp. and VMware Inc., plans to go public.
Pivotal filed preliminary documents for an initial public
offering, Securities and Exchange Commission records show. The
company's filing Friday with the SEC lists an amount of $100
million, but that is a placeholder figure likely to change.
Pivotal didn't disclose where its shares would list or under
what ticker symbol it would trade. It also didn't list an initial
public offering price, the filing shows.
The company had revenue of $509.4 million in fiscal 2018, which
ended Feb. 2, compared with $280.9 million in fiscal 2016 and
$416.3 million in fiscal 2017. Fiscal 2018 was the first year in
which subscription revenue exceeded its services revenue, but the
company expects that subscription revenue will become a larger
percentage of its total revenue over time, it said in the
filing.
The company posted a $163.5 million net loss in fiscal 2018,
narrower than the $282.7 million it recorded in fiscal 2016 and the
$232.9 million in fiscal 2017.
Pivotal plans to use the IPO proceeds to increase its financial
flexibility and for working capital, investments and other general
purposes. It also wants to create a public market for its stock and
facilitate its future access to the public equity markets. It may
also use a portion of the proceeds for investments in or
acquisitions of businesses, technologies or other assets.
Dell Technologies Inc. is currently Pivotal's majority
stockholder. Dell was taken private in 2013 by its founder, Michael
Dell, and investment firm Silver Lake. Both Mr. Dell and Silver
Lake hold stakes in Pivotal through Dell, the SEC filing shows. As
of Feb. 2, Pivotal had more than 2,518 full-time employees.
In January, The Wall Street Journal reported that Dell is
considering a range of strategic alternatives that could transform
the maker of PCs and data-storage devices, according to people
familiar with the matter.
The closely held technology giant is expected to explore options
including an IPO and a purchase of the rest of VMware, a publicly
traded cloud-infrastructure company, the people said.
In 2016, Dell bought data-storage company EMC for $67 billion in
the largest technology takeover ever. When Dell bought EMC, EMC
owned 80% of VMware. Based in Palo Alto, Calif., VMware produces
software related to databases, storage and the Internet of
Things.
Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com
(END) Dow Jones Newswires
March 24, 2018 02:47 ET (06:47 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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