Imperva eyes channel growth as it files for IPO

Database security vendor says it will invest further in the channel as it lays out plans for $75m stock market debut

Database security vendor Imperva aims to raise up to $75m (£46m) through an initial public offering (IPO) and hinted it will lavish some of the proceeds on its channel.

Founded in 2002 by Check Point co-founder Shlomo Kramer, Imperva is ready to take the plunge on the NYSE after growing sales 41 per cent to $55.4m last year.

The vendor declined to provide a price range for the IPO but gave the proposed maximum aggregate offering price as $75m.

Imperva counts more than 100 Fortune 1000 firms among its 1,300 customers and sells primarily through a network of 350 partners.

It hinted that channel expansion would be a priority.

"We believe that our hybrid sales model, which combines the leverage of a channel sales model with the account control of a direct sales model, has played an important role in our success to date," it said in its IPO prospectus.

"We intend to continue to invest significant resources to further strengthen our existing relationships with channel partners and to expand our network by adding new channel partners."

The firm, which cited Guardium, Secerno and Sentrigo as key competitors, has incurred net losses in each of its fiscal years since inception, with 2010 losses standing at $12m. EMEA sales rose from $9.9m to $13.5m last year.

Imperva claimed data security represents a "significant green-field opportunity", arguing that firms must spend more to match the growing threat to business data.

"According to IDC, worldwide spending on IT security products is expected to grow to $38bn in 2014 from $27bn in 2010," it stated.

"We believe that only a small fraction of this is spent today on protecting high-value business data in the datacentre."

Chris Walsh, sales director of Imperva's UK distributor Exclusive Networks, said the string of recent data breaches had boosted Imperva's profile and argued it was an ideal time for the vendor to go public.

"Its sole purpose in life is web and database security and we believe it is the market leader in this area," he said.

"Our partner recruitment activities have increased ten-fold but it's a complex sale and we want to work with skilled boutiques and systems integrators that understand the product."

Imperva said it intends to submit an application to have its common stock listed on the NYSE under the symbol IMPV.