Exclusive: Cisco rival Arista Networks picks banks for IPO - sources

Tue Nov 12, 2013 6:01pm EST
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By Nicola Leske and Soyoung Kim

NEW YORK (Reuters) - Arista Networks, a maker of network switches that competes with much bigger rival Cisco Systems Inc, has selected banks to lead a proposed initial public offering for next year, according to people familiar with the matter.

Morgan Stanley, Citigroup Inc and Credit Suisse Group will lead the offering that is at an early stage of planning, the people said on Tuesday, asking not to be named because the matter is not public.

Representatives for Morgan Stanley did not immediately respond to requests for comment. Arista, Citigroup and Credit Suisse declined to comment.

The Santa Clara-based company could have a valuation of around $2.5 billion, according to some industry analysts who attended a presentation the company made in September. Arista's 2013 revenue is likely to exceed $300 million, ISI Group analyst Brian Marshall said.

Arista is one of several high-profile technology companies gearing up for an IPO, on the heels of a successful debut by Twitter Inc last week, which raised more than $1.8 billion for the microblogging company.

Reuters reported on Friday that fast-growing data storage company Box has selected Morgan Stanley, Credit Suisse and JPMorgan Chase & Co to lead a proposed IPO that could raise around $500 million.

Arista was started in 2004 by German-born Andy Bechtolsheim and Canadian native David Cheriton, a University of Stanford computer science professor, with $100 million in funding.

The company introduced its first products, used in high frequency trading, in 2008. It has also gained traction with new uses for its products such as cloud computing, big data and software defined networking.   Continued...