According to recent reports, Vista Equity hired investment banks to prepare their identity and access management solution provider Ping Identity for an initial public offering (IPO).
Those familiar with the IAM and PAM market and with Ping Identity say with confidence the IPO could value Ping Identity between $2 and $3 billion (including debt). This may prove a conservative estimate; competitor Okta moved forward with its IPO in 2017 and is currently trading at 275% above its IPO price. Cisco Inc purchased Duo Security—a privately held authentication provider—for $2.35 billion earlier this year.
Sources close to the dealings say Vista Equity will consider acquisition offers for Ping Identity even as it continues its IPO preparations; the firm tends to sell its portfolio companies outright. Vista Equity may not move forward with the IPO launch until 2019 or 2020, something of an unusual move for IPOs. Goldman Sachs will lead the IPO syndicate.
As of the time of writing Vista Equity, Ping Identity, and Goldman Sachs all declined, or could not be reached for, comment. Vista Equity, a prominent buyout firm, purchased Ping Identity for $600 million in 2016. Therefore, a successful IPO could result in a huge profit for Vista Equity.
Founded in 2002, Ping Identity saw notable industry success in 2018. Technology research giant Gartner recognized them as a Leader in their 2018 Access Management, Worldwide Magic Quadrant report. They also saw remarkable success for their Identiverse (formerly the Cloud Identity Summit) security and application conference and made multiple strategic partnerships.
These successes may lay the foundation for market confidence and thus a successful IPO, should it go forward. Identity Management as an industry is poised to grow rapidly as more enterprises adopt next-generation cybersecurity and as identity management subsumes other components of InfoSec.
Reuters reported this story on December 11, 2018.