Fortinet to become first IT security IPO of 2009

Fortinet has gone public, marking the first time since February 2008 that an IT security vendor held an initial public offering (IPO).

The California-based provider of unified threat management (UTM) appliances plans to sell 12.5 million shares of stock, which have debuted at a share price of between US$9 and US$11, according to a filing with the U.S. Securities and Exchange Commission.

The stock is being listed on the NASDAQ as "FTNT."

According to the documents, Fortinet is the leading provider of integrated firewall, intrusion prevention and anti-virus solutions, controlling a 15.4 percent market share, based on findings by IDC. The company's revenue has climbed from US$123.5 million in fiscal year 2006 to US$211.8 million in 2008.

Competitors of Fortinet said the IPO validates the UTM market.

“Fortinet's IPO reflects the growing demand for security solutions that can help companies drive down the cost and complexity of security management,” said Jim Freeze, chief marketing officer at Crossbeam Systems. “The news also highlights larger data center consolidation and virtualization trends we see that are enabling more cost-efficient, flexible and scalable IT infrastructures."

ArcSight, provider of security management offerings, was the last major IT security company to file for public status.

See original article on scmagazineus.com