Carbonite, which is a leading provider of online backup solutions for consumers and SMBs, raised $62.5 million by offering 6.25 million shares at $10, at the bottom of its revised range of $10 to $11 and well below its originally proposed range of $15 to $17.
Carbonite, the leading provider of online backup solutions for individuals and businesses, has amassed more than 1.1 million subscribers in over 100 countries (94% US) since 2005. The company's "set and forget" solution automatically and continuously uploads encrypted copies of customers' files to the Carbonite Personal Cloud, requiring minimal effort on the consumers' part. Having established a leading position with consumers (92% of revenue) it recently launced services for small to mid-sized businesses that could become a significant component of revenue. Carbonite's business model offers a highly predictable revenue stream through subscriptions to its services; its revenue has grown at an impressive CAGR of 289% since 2006, reaching $39 million in 2010. Although it will likely remain unprofitable until at least 2014 as it invests in marketing and technology, Carbonite's track record thus far suggests that it is poised to take advantage of its huge and expanding addressable market of one billion PCs worldwide.
Carbonite plans to list on the NASDAQ under the symbol CARB. BofA Merrill Lynch and J.P. Morgan acted as lead managers on the deal, which is the first IPO to successfully price so far this week.
