Carbonite Shrugs Off Volatility, Expects Thursday IPO


Carbonite, the online backup company, is expected to brave the IPO waters Thursday.

Today, Carbonite priced 6.25 million shares at $10 each, the bottom of its expected $10 to $11 price range (this was lowered Wednesday from its prior target of $15 to $17 a share). BofA Merrill Lynch and J.P. Morgan are joint bookrunners on the deal. Other underwriters include William Blair & Co., Canaccord Genuity, Oppenheimer & Co. and Pacific Crest Securities. The underwriters have the option to buy another 937,500 shares.

Carbonite is expected to trade Thursday under the Nasdaq ticker CARB. Several deals — including WhiteGlove Health and Loyalty Alliance — have postponed their IPOs this week due to broad market volatility. Carbonite was the first to successfully price their offering, according to Renaissance Capital.

Carbonite is offering to sell about 5.4 million shares while some stockholders are providing 883,527 shares.

None of the VCs involved in the deal look like they’re unloading stock. In fact, Menlo Ventures, which owns 31.6% of Carbonite, and Crosslink Capital, which has 5.7%, are buying additional shares, according to an Aug. 10 SEC filing. Menlo is buying up to 800,000 more shares while Crosslink is purchasing 1.2 million shares.

Performance Equity Management owns 5.7% before the deal and will see its stake fall to 4.4 percent. First Plaza Group Trust, which owns 5.4%, will see its holding drop to 4.2 percent.

Officials for Carbonite couldn’t be reached for comment.

Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.

Sign up to our Newsletter

Receive updates from our PE HUB Wire and Top Stories of the Week newsletters:

We will not send you spam, and we don't share your email address with 3rd parties.