FusionStorm Global, a national IT solutions provider, has withdrawn its plans for initial public offering according to a statement filed last week with the Securities and Exchange Commission. However, the document leaves open the possibility that the IPO decision may be revisited in the future.
"At this time the Company has determined not to proceed with the initial public offering contemplated by the Registration Statement," the SEC filing reads, in part. "However, the Company requests that all fees paid to the Commission in connection with the filing of the Registration Statement be credited for future use should the Company proceed with the filing of a subsequent registration statement meeting the requirements of Rule 457(p) under the Securities Act."
FusionStorm had initially filed for the $175 million IPO in August of 2011 and had been reportedly planning to sell more than 13 million shares on the Nasdaq under the symbol "FSTM," priced initially in the $12 to $14 range. But the company postponed the move in December, prior to withdrawing from the IPO on May 16.
[Related: Despite Rocky Economy FusionStorm Files IPO]
FBR Capital Markets and Needham & Co. had been selected as joint bookrunners.
The IPO had apparently been planned as part of a merger strategy that involved FusionStorm, a San Francisco-based solutions provider named to this year's CRN's Tech Elite 250, Red River Computer Company of Claremont, N.H., and Global Technology Resources in Denver. The combined companies were expected to share synergies that would extend the combined company's footprint in technologies, locations and services.
It is unclear as to how withdrawal from the IPO will impact the potential merger. Representatives from of the three companies did not respond to requests for comment.
FusionStorm has had a turbulent history, including financial challenges and a legal battle with San Diego-based competitor Technology Information Group that alleged FusionStorm was guilty of employee poaching and related confidentiality issues. The case was eventually settled for nearly $11 million.
PUBLISHED MAY 22, 2013