Switch recently filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million, although this number normally is just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol SWCH.
The underwriters for the offering are Goldman Sachs, JPMorgan, BMO Capital Markets, Wells Fargo, Citigroup, Credit Suisse, Jefferies, BTIG, Raymond James, Stifel and William Blair.
This company is a pioneer in the design, construction and operation of some of the world’s most reliable, secure, resilient and sustainable data centers. Its advanced data centers are the center of the platform and provide power densities that exceed industry averages with efficient cooling, while being powered by 100% renewable energy.
Two of these data centers are the only carrier-neutral colocation facilities in the world to be certified Tier IV Design, Tier IV Facility and Tier IV Gold in Operational Excellence. While these certifications have been the highest classifications available in the industry, Switch is building its current facilities to proprietary Tier 5 Platinum standards, which exceed Tier IV standards.
Switch currently has more than 800 customers, including some of the world’s largest technology and digital media companies, cloud and managed service providers, financial institutions and telecommunications providers.
In the filing the company described its finances as follows:
On an annual basis, our revenue has grown from $166.8 million in 2013 to $318.4 million in 2016, representing a compounded annual growth rate, or CAGR, of 24.0%. We generated net income of $73.5 million and $31.4 million during the years ended December 31, 2015 and 2016, respectively, and $35.2 million and $35.3 million during the six months ended June 30, 2016 and 2017, respectively… In 2015 and 2016, we generated Adjusted EBITDA of $141.9 million and $153.2 million, respectively, representing an Adjusted EBITDA margin of 53.4% and 48.1%, respectively.
Switch intends to use the net proceeds from this offering for working capital and general corporate purposes, as well as to repay debt.