Can you talk about Kaseya going public? How real is that? Is it going to look like a Datto going public, where it’s 25 percent up for public sale? And why is there so much hesitation, between you and SolarWinds in terms of what is next? Both companies keep saying “possible” public offering or possible spin merger? What are you waiting to change before you are more certain?
Why does someone say maybe? Whoever wants to make a definitive statement, it doesn’t pan out, and you look like a schmuck and no one can trust what you say? You ask about Kaseya, and yes, it’s very real. We’re spending millions with our auditor Deloitte, with The Connor Group, that’s another financial firm that helps you go public. We’re working very closely with our bankers.
We’re doing it. It’s very serious. There is auditing, and then there is auditing to the level of a public company. You need two or three years of audited statements, depending on what you are looking to do. So you have to go back and reaudit the other statements. It could take six months, three months, or four months. There’s that part.
Market conditions are always something to take a look at, but it is not “Is the market up or down?” The people that buy an IPO are institutional investors. You go on a roadshow and you pitch your company to different institutions. There’s always a niche group of investors you are targeting within an IPO and it depends what their appetite is at that moment in time.
I’m not the IPO expert, but I’ve learned the process in the last 20 years, and that appetite can change. And it can change relatively quickly or draft up or down.
SolarWinds is talking about going public. SolarWinds has a ton of debt. Their equity has been crushed because of the whole security situation. I’m sure their lenders are very concerned that their auditors might give them different kinds of ratings based on their business’s viability. Maybe SolarWinds has to generate a ton of cash to reduce their leverage ratio. That’s a market condition that will influence the IPO, or the spin-off of SolarWinds MSP business.
There are a lot of real variables there. Also private equity firms might come in and say, ’I want to buy that and put it together with Kaseya.’ Or Datto might do it. Or ConnectWise. The IPO process is a 15-month long process. A lot of stuff can happen.