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Presidio Reportedly Close to Filing IPO

Financial Information*
  • Enterprise Value                           $3 billion
Transaction Facts
  • IT Solution Provider Presidio Holdings is reportedly considering an upcoming IPO filing, which may occur as early as later this week.
  • The IPO would value Presidio at approximately $3 billion, according to a report in the Wall Street Journal citing a person familiar with the proposed deal.
  • Presidio, which earlier this year was reported to be interviewing bankers, is now said to have hired JP Morgan Chase and Citigroup to lead the offering.
  • The transaction would take place next year.
A Rare Light in a Dark Sky
  • Few and Far Between: 2016 has been a slow year for US IPOs – according to Dealogic, 104 companies have raised $22 billion on a year-to-date basis. This is the lowest dollar amount in any similar period dating to 2003.
  • PE IPOs Not Immune to Trend: Presidio is owned by Apollo Global Management, which has used its resources to fund several supplemental acquisitions such as that of Netech earlier this year. This has not been a year of big public exits. Private-equity backed companies sold $34.2 billion of stock in US IPOs in 2015 – a record – but only $9.7 billion in 2016.
  • A Warmer Reception to Come?: Though this has been a tight year for IPOs, multiple signs indicate a warming climate – particularly in the technology space. IT Services provider peers are up, and the tech companies that did go public in 2016 enjoyed an average 30% day-one rise in share price.
For more information about this transaction, click here to read an article in the Wall Street Journal.
*Though no formal IPO filing has been announced, a media report appeared in the Wall Street Journal citing “a person familiar with the matter.”
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