Starent, BigBand and Infinera: Forget the IPO, Why Not an LBO?
Posted on Mar 14th, 2007
Bill Koss Full Disclosure: I do not own shares of any of the companies mentioned in this post.
Bill Koss ends blog with
..."As a PE-buyout thesis to explore, perhaps one of these three companies should have explored having a PE-buyout firm, take them private by buying out the venture guys? The hypothesis is for a buyout of the PE-venture firms, use the capital that PE-buyout firms have to buy assets from larger public companies or buy public companies that have lost direction, but have legacy revenue streams. The objective is to build a big company that can compete on a global scale. All three of these firms could have formed the core business team of a really big company built on a rollup of legacy and emerging technology companies, which is just an idea on a Tuesday afternoon. "...
*********************************************
NOTE from MLD38, I added the links below, but for more information, see his full blog entry here: networking.seekingalpha.com
Starts off:
..."Bill Koss submits: The WSJ wrote ( online.wsj.com ) yesterday about the recent tech IPOs and the new tech IPOs on the way.
The focus of this post is the upcoming BigBand ( bigbandnet.com ) , Starent ( starentnetworks.com ) and Infinera ( infinera.com ) IPOs. These companies have filed S-1s and want to join RiverBed ( riverbed.com ) (RVBD quote seekingalpha.com ) and Acme Packet ( acmepacket.com ) (APKT quote seekingalpha.com ) as recently listed companies.
Putting RiverBed aside, Infinera, BigBand, Starent and Acme Packet all share a few common characteristics. They are system level (or box) companies that sell networking infrastructure to service providers. I will be the first to admit that there is a difference in applications and targeted service providers, but I want to put the fine print aside for one minute and assume that the service provider market is consolidating and offering a common set of services."... |
