A10 Networks caps a busy year in application delivery controllers by filing for its IPO.

Dan O'Shea, Analyst, Heavyreading.com

February 24, 2014

2 Min Read
ADC Vendor A10 Networks Plans IPO

What a difference a year makes: Almost one year to the day after announcing a major partnership with Ericsson aimed at changing its fortunes following a patent dispute, application delivery controller firm A10 Networks Inc. has registered for an initial public offering with the intention of raising about $100 million.

One year ago, the 10-year-old company hooked up with Ericsson AB (Nasdaq: ERIC) in a deal for the larger vendor to resell A10's AX system for IPv4-IPv6 translation. That partnership came shortly after the small ADC vendor suffered a setback in a patent infringement lawsuit with Brocade Communications Systems Inc. (Nasdaq: BRCD), with a ruling for A10 to pay Brocade $60 million in damages. The companies later settled out of court. (See A10 Gains From Cisco's Exit & Ericsson's Hand and Brocade & A10 Settle.)

In the year since, competition on the ADC market has become tense, with A10 fighting Citrix Systems Inc. (Nasdaq: CTXS), F5 Networks Inc. (Nasdaq: FFIV), Riverbed Technology Inc. (Nasdaq: RVBD), and KEMP Technologies Inc. , among others, for control of a market that vendor giant Cisco Systems backed out of. A10 has also sought to expand into new markets, like protection for distributed denial-of-service attacks. (See Kemp Looks to Fill Cisco's ADC Void, Cisco Ready to Quit Load Balancers, and A10 Enters DDOS Protection Market.)

It might be the right time to put a market value on an ADC firm. Last month, Riverbed rejected a $3 billion-plus acquisition offer from minority investor Elliott Management, and promptly saw its stock price jump above $20 per share. There have since been rumors that larger vendors might look to acquire Riverbed. (See Riverbed Spurns Takeover Offer and Riverbed Under Pressure to Sell.)

Neither a date nor a price range for the proposed A10 Networks IPO has been determined yet.

— Dan O'Shea, Managing Editor, Light Reading

About the Author(s)

Dan O'Shea

Analyst, Heavyreading.com

You want Dans? We got 'em! This one, "Fancy" Dan O'Shea, has been covering the telecom industry for 20 years, writing about virtually every technology segment and winning several ASBPE awards in the process. He previously served as editor-in-chief of Telephony magazine, and was the founding editor of FierceTelecom. Grrrr! Most recently, this sleep-deprived father of two young children has been a Chicago-based freelance writer, and continues to pontificate on non-telecom topics such as fantasy sports, craft beer, baseball and other subjects that pay very little but go down well at parties. In his spare time he claims to be reading Ulysses (yeah, right), owns fantasy sports teams that almost never win, and indulges in some fieldwork with those craft beers. So basically, it's time to boost those bar budgets, folks!

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