German cloud company Zimory eyes U.S. listing
Zimory GmbH, a Berlin-based cloud computing company, is looking at listing its shares in the United States in 2013, its CEO said, potentially joining a wave of market newcomers in a hot sector that has also sparked a flurry of deals involving some of the biggest technology names.
Zimory, partly owned by venture capital firm Creathor Venture, Deutsche Telekom's T-Venture unit and German development bank KfW Bankengruppe, said its investors are considering a number of exit options.
One option, by 2013, that we are really considering seriously is to run an IPO, to get more access to equity and gain public visibility, CEO Rüdiger Baumann told Reuters in a telephone interview.
If the company, which was founded four years ago, decides to go public, it would list in New York as IPO deals in the United States are more fruitful, Baumann said.
Currently, 60 percent of the cloud computing market is focused in the United States, and this is also the largest territory of potential investors.
The move to cloud computing -- an increasingly popular technology that allows remote access to computing power and data over the Internet -- is also spurring merger activity.
Technology giants Hewlett Packard, Dell Inc and IBM have been on a buying spree to boost their presence in cloud computing and services, and several deals have involved unlisted companies.
The buzz helped the $119 million IPO of Servicesource, which provides cloud applications and services to technology companies. The company sold its shares in March for more than it had initially expected, and saw its value rise 22 percent when it made its trading debut on Nasdaq.
This month has seen another cloud services company file for an IPO. Intelepeer, which provides cloud based communication services, said it was looking to raise up to $100 million in its first foray on the public markets.
Zimory's Baumann said the company would have to make some internal changes if it were to list in the United States.
We need to change our book-keeping from German standards to US GAAP, and we need a presence in the U.S. So we need to do a couple of things first before we are capable to run an IPO there, he said.
(Reporting by Jochelle Mendonca and Siddharth Cavale in BANGALORE, Editing by Ian Geoghegan)
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